An Astaldi SpA-led group building a 1.3 kilometer (0.8 mile) bridge over the Bosporus in Turkey raised $2.3 billion of project financing, according to three people with knowledge of the matter.
The consortium obtained the 10-year debt from seven Turkish banks to back construction of the crossing and 60 kilometers of associated roads, said the people, who asked not to be identified because the discussions are private. The banks are Turkiye Garanti Bankasi AS, Turkiye Is Bankasi AS, Turkiye Vakiflar Bankasi TAO, TC Ziraat Bankasi AS, Turkiye Halk Bankasi AS, Akbank TAS and Yapi & Kredi Bankasi AS.
The Turkish government chose the consortium, which also includes IC Ictas Insaat Sanayi & Ticaret AS of Turkey, last year for the $3 billion project to construct a third bridge over the Bosporus waterway that divides Istanbul. The companies have 10 years to construct and operate the bridge and toll roads, according to bid documents.
Banks are due to sign the financing later this month with repayments beginning after a two-year grace period, the people said. Construction of the bridge began in May with Turkish Prime Minister Recep Tayyip Erdogan asking for the project to complete by May 2015.
Officials at IC Ictas and Astaldi in Turkey declined to comment on the financing. Akbank, Garanti Bankasi and Is Bankasi spokesmen didn’t answer phone calls seeking comment. Halk Bankasi, Vakiflar Bankasi, Ziraat Bankasi, Vakiflar Bankasi and Yapi Kredi officials declined to comment.