Six banks help Limak sail into Turkish port

The Turkish developer managed to raise $425m in debt to reach financial close on a 36-year contract to operate and increase the capacity of Turkey’s Iskenderun Port, located on the country’s Mediterranean coast.

Limak, a Turkish infrastructure developer, managed to secure the backing of six banks to reach financial close on a contract to operate and modernise Iskenderun Port, one of Turkey’s largest ports, located on the Mediterranean coast.

Italian bank Unicredit helped captain the brownfield deal to port, serving as coordinating mandated lead arranger (MLA), modelling bank and bookrunner. Five Turkish banks – Finansbank, Garanti, Isbank, Sinai Kalnima and Vakiflar – also served as MLAs. 

Together, the six banks contributed $425 million in debt via a 13.5-year loan. Garanti and Isbank took the larger tickets, at $100 million each, followed by Finansbank, which provided $75 million. Unicredit, Sinai Kalnima and Vakiflar each took tickets of $50 million. The loan has a three-year grace period.

Under the privatisation agreement, Limak will operate and expand capacity at Iskenderun Port so that it will be able to handle an annual cargo throughput of 1.33 million Twenty-Foot Equivalent Units (TEU). Works are due to start in early 2012 and should last for approximately 44 months. 

To view more details on the transaction, view the asset’s profile at Infrastructure Investor Assets