The European Bank of Reconstruction and Development (EBRD) has arranged a €250mn financing package to build a new airport terminal in Izmir.

Turkey’s third city is home to 10% of its workforce, 10% of industrial production and accounts for 20% of national exports. The extra capacity will facilitate further trade growth.

The bank will contribute €70mn from its own account, with a tenor of 16 years. €75mn will be syndicated to UniCredit and Siemens Bank, with a tenor of 15 years, while local organisations Denizbank and the Black Sea Trade and Development Bank will contribute €65mn and €40mn, respectively.

The EBRD’s director of transport Sue Barrett was pleased the bank managed to get the loan syndicated in a tough climate. She tells GTR: “We can’t ignore the fact that the financial market is constrained, particularly in Europe. It’s not the easiest time to be doing these projects but nevertheless the fact that this one is successfully closing is an indication of the importance of Izmir as a city, it needs a good airport and the existing facilities aren’t sufficient.”

Transport in Turkey is set to feature for the EBRD again before the end of the year, with Barrett revealing to GTR that the bank is close to putting the finishing touches to a financing package for the Eurasia Tunnel, a 14.6km route that will cross the Bosporus beneath the seabed, connecting Europe with Asia. The financing package is expected to be worth €1.2bn.