Best middle east project finance deal award to Adic led consortium

Published August 18th, 2008 - 09:07 GMT

Best middle east project finance deal award to Adic led consortium

Following its successful bid for concession of rehabilitation and expansion of Queen Alia International Airport (QAIA) in Jordan last year, the Abu Dhabi Investment Company led consortium has been accredited yet another recognition for this groundbreaking transaction, granted the Best Middle East Project Finance Deal Award for the year 2007.

Granted by EMEAFINANCE Magazine, the leading international publication exclusively dedicated to represent the EMEA financial market’s independent voice, ADIC’s award adjoins the series of recognitions to QAIA project deal - a third award succeeding the Jane’s Transport Finance Award as Middle East Airport Finance Deal of the Year and the Project Finance Award as Middle East Transport Deal of the Year.

Commenting on the award, Nazem Fawwaz Al Kudsi, ADIC’s CEO said: “Moving a step ahead in the investment world with our direction to manage third party funds, our strategy will stand out of the shadow, highlighted by ADIC’s ability to  deploy capital in an effective and efficient manner, and to  major transactions such as this global one in full accuracy.”

Mark Thompson, CEO of ADIC-UBS Infrastructure JV, and Executive Director of ADIC Infrastructure Group said: “To have been able to negotiate a complex financing package and reach financial close on a ground breaking transaction of this type within six months during a period of adverse global market conditions was a major achievement and one of which ADIC are extremely proud”.

Five consortia submitted bids for the project in April last year and following the completion of the evaluation process, Airport International Group (AIG) – of which ADIC is the major shareholder – was selected as the winner. Under the terms of the 25-year concession agreement, AIG is responsible for the rehabilitation of the existing terminal and for the construction of a state of the art new terminal with a capacity of nine million passengers per annum, as well as for its ongoing operation and maintenance.

The project sponsors include ADIC with 38%, Noor Financial Investment of Kuwait with 24%, Joannou & Paraskevaides of Cyprus with 9.5%, J&P Avax of Greece with 9.5%, Aéroports de Paris with 9.5% and the local EDGO Ventures with the remaining 9.5%.  AIG has entered into a fixed price engineering, procurement, and construction contract with a joint venture between Joannou & Paraskevaides and J&P Avax for the development of the new terminal and into a long term Operation & Maintenance Agreement with Aéroports de Paris Management for the operation and maintenance of the existing and the new terminal.

The transaction marks an important milestone, being the first true project finance transaction in Jordan and one of the first in the region in which conventional and Islamic facilities have been used. The total project size is approximately USD 700 million of which USD 370 million is being provided by debt and the balance through a combination of shareholders loans and equity and the internal cash flows generated during the three-year construction period. Alongside the financial advisors, ADIC played a leading role in negotiating and structuring a complex limited recourse-financing package. This comprised a USD 160 million facility from three commercial banks, a USD 110 million facility from International Finance Corporation, and a USD 100 million facility from Islamic Development Bank.

The new terminal has been designed by the internationally renowned firm of Foster + Partners and will ultimately have a capacity of 12 million passengers per annum by the end of the concession period. Furthermore, it is modern in its design, making extensive use of natural daylight whilst also incorporating many local characteristics, and it is expected to be in the top five in its class in the world.

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