Arbatec, the consortium responsible for the construction of Midfield Terminal Building (MTB) at Abu Dhabi International airport (ADI), is close to sign a $1.1bn financing deal for the project according to reports.
The Shariah-compliant financing deal is led by Mashreq and also includes First Gulf Bank, Union National Bank, Al Hilal Bank, all from Abu Dhabi, and Jordan's Arab Bank.
Out of the total financing facility, 80% will be Sharia-compliant, with the remainder planned to be secured through a conventional loan.
The four-year contractor finance facility will be provided in equal amount by the banks.
TAV airports Project and Structured Finance coordinator Burcu Geris was quoted by Reuters as saying that the company was indeed using Islamic finance for its Abu Dhabi project.
"Details of the financing are to be released later," Geris said. "Islamic finance through Saudi banks was our first option for financing in Medina Airport."
"It only came as a natural choice since Saudi banks are both very liquid and very much experienced in structuring and providing Islamic finance facilities."
TAV has already secured a $1.2bn Sharia-compliant facility for Saudi Arabia's Medina Airport project, which is scheduled for completion in 2015.
Turkey's TAV Insaat, Dubai's Arabtec and Athens-based Consolidated Contractors had secured the $2.9bn contract in June 2012 for the construction of a mid-field terminal in the airport.
The proposed 700,000m² terminal building will allow the airport to serve 27-30 million passengers per year.
Construction on the project, which will be executed in two phases, is expected to commence in the third quarter of 2012 with scheduled completion in 2017.
According to the airport, the first phase includes construction of the terminal over the next four years, while the second phase involves an operational readiness assessment (ORA), which will allow testing all aspects of the terminal for ensuring operational and efficiency readiness.
Image: The Midfield Terminal Building at ADIA's Mid Field Terminal building is set to be unveiled in 2017. Photo: courtesy Abu Dhabi Airports Company.