EBRD, IFC extend financing for key airport in Turkish tourism hub
Two key international development and financing institutions announced on Wednesday that they would provide multimillion-dollar support for a key airport in Türkiye’s coastal city of Antalya, a widely popular tourism hub.
The European Bank for Reconstruction and Development (EBRD) announced that it will provide a 315 million euro ($358 million) loan to Antalya Airport, which welcomes approximately 30 million passengers each year, both foreign and domestic, to the Turkish Riviera resort city.
The loan will be provided to Fraport TAV Antalya Investment, Construction and Operation, a joint venture between Fraport AG and TAV Airports, established in Türkiye to operate Antalya Airport under a new 25-year concession, the bank stated.
“The loan forms part of a 2.5 billion euro debt package. The proceeds will be used to refinance a bridge loan that Fraport TAV Antalya Investment, Construction and Operation raised from commercial banks and development finance institutions to cover the period 2022-24, as well as covering the associated financing expenses,” it said.
With the refinancing of the bridge loan, Fraport TAV Antalya will move from temporary financing to a stable, long-term project financing loan, which is important for a large-scale infrastructure project such as Antalya Airport.
“Partnering with the EBRD on this refinancing initiative is pivotal for strengthening Antalya Airport’s financial foundations and supporting its growth as a key gateway to the Turkish Riviera. This collaboration underscores our commitment to sustainable development in Türkiye’s aviation sector, paving the way for enhanced infrastructure and workforce opportunities,” said Michael Reusch, a member of Fraport TAV Antalya’s board nominated by Fraport AG.
Burcu Geriş, TAV Airports’ chief financial officer and deputy CEO, said: “This signing coincides with the opening of the new facilities. Antalya is the largest tourism destination in the Mediterranean and Türkiye’s second-busiest hub in terms of international traffic. This is a strategic investment that will provide the necessary infrastructure to support the region’s long-term development.”
The International Finance Corporation (IFC), a member of the World Bank Group, also announced on Wednesday that it would support the airport’s development and modernization with an investment of 200 million euros.
The 200 million euro investment in Fraport TAV marks IFC’s third in Antalya Airport, building on previous commitments in 2023 and 2024, it said in a written statement.
“It aims to replace short-term loans with a 13.5-year financing arrangement to ensure sustainable long-term funding. The IFC is also mobilizing an additional 115 million euros from other investors,” it added.
Serving around 250 destinations, Antalya Airport is currently the third-largest airport in Türkiye. It has grown at one of the fastest rates in Europe over the past 20 years, making it a significant asset to the Turkish economy.
Tourism continues to play a crucial role in Türkiye’s economy, accounting for approximately 12% of the country’s gross domestic product (GDP) and generating around 10% of national employment.
As a central entry point to the Turkish Riviera for travelers from Europe and the Middle East, it has dramatically improved regional connections.
