Rejoicing moves on the Bay Bridge

Pleasant move on the Gulf bridge: With the participation of foreign bank Deutsche Bank to the Geze-Izmit highway project, most of the problems in the field of finance have been solved, and the maturity period has also doubled.
With the participation of Deutsche Bank to eight Turkish banks in the first phase of financing of the Gebze-İzmir highway project, with a total investment cost of about 7.4 billion dollars, the company created a 5 billion dollar refinancing package for the whole project and the 7-year term in previous financing was extended to 15 years.
According to the information given by three banking sources knowledgeable about the subject to Reuters, an agreement on re-financing will be reached and the contract will be signed soon.
"The new financing package will be close to $ 5 billion, the loan term will be 15 years," one source said, while another source said the cost of the new loan will be around Libor plus 500 basis points.
With the build-operate-transfer model 2009 was awarded the contract for the 22 year 4 for the XNUMX year. After the tender Yüksel Group was out of the consortium.
The Gebze-Orhangazi-İzmir Motorway project, including the İzmit Bay crossing bridge; As Gebze-Orhangazi and Orhangazi-İzmir, the second phase was divided into two groups as Orhangazi-Bursa and Bursa-İzmir. Separate funding was planned for each phase.
NEW PACKAGE HAS BEEN CREATED
For the construction of the part between Gebze and Bursa including the bridge, 2 billion dollars financing was provided from eight Turkish banks.
As for the remainder of the project, while the equity contribution and the use of loans from banks were planned, a consortium of banks, number nine, created a new refinancing package for the whole project.
A banking source stated that the old financing package was provided at times when the markets were worse than today, said: “The previous financing time that the banks provided in 2012 and 2013, when the bridge construction came to an end, that is, the construction risk was reduced, with a package including a large refinancing for the whole project. it was a highly anticipated scenario. That's actually what's happening right now.
In fact, the perception of 'Deutsche came into play and therefore this package has occurred' is not very correct. This package would be configured soon, though not now by the same local bank group. As a result, the support provided by Turkish banks cannot be denied in reaching this point of the project. ”
The Turkish banks included in the financing are Akbank, Finansbank, Garanti Bank, Halkbank, İş Bank, Vakıfbank, Yapı Kredi and Ziraat Bank.