Antalya-Alanya Motorway secured international liquidity through sustainability-linked loan
The finance agreement for,Antalya-Alanya Motorway Project which will reduce the travel time between Antalya and Alanya, was signed at the ceremony held in Ankara on 6 October. Under the Public-Private Partnership (PPP) model, 87% of the project's €1.7 billion sustainability-linked loan was provided by international financial institutions. The project, which is important for the region's tourism and trade potential, was financed by a consortium of 14 banks and financial institutions and is expected to be completed within three years. During the financing process, commitment from creditors was strong, at 2.1 times the loan amount.
The Antalya-Alanya Motorway Project, which is set to significantly reduce traffic congestion and cut travel times between Antalya and Alanya from 2.5 hours to 36 minutes, has secured a €1.7 billion loan from a consortium of 14 banks and financial institutions over a 14-year term. The finance agreement of the project, which is to be implemented under the PPP model, is signed at the ceremony held in Ankara on 6 October. Minister of Transport and Infrastructure Abdulkadir Uraloğlu, President of the Presidency of Strategy and Budget İbrahim Şenel, AK Parti Antalya Deputies Atay Uslu, Serap Yazıcı Özbudun, and Tuba Vural Çokal, MHP Antalya Deputy Abdurrahman Başkan, Deputy Ministers of Transport and Infrastructure Enver İskurt, Osman Boyraz, and Ömer Fatih Sayan, as well as General Director of Highways Ahmet Gülşen, Director General for Foreign Economic Relations at the Ministry of Treasury and Finance Kerem Dönmez, Honorary Presidents of Limak Group of Companies Nihat Özdemir and Sezai Bacaksız, Chair of Limak Holding Ebru Özdemir, Vice Chair Serhan Bacaksız, Board Members Batuhan Özdemir and Serdar Bacaksız, as well as representatives from the relevant banks, financial institutions, and project managers attanded to the ceremony.
Ebru Özdemir, the Chair of Limak Holding, stated: “The strong commitment from banks and financial institutions to the Antalya–Alanya Motorway Project's financing is the clearest signal of the confidence in our country, in Limak, and in the project itself. With 87% of the loan coming from international financial institutions, our project will be executed in compliance with international environmental and social standards. This commitment makes it a pioneering sustainable infrastructure investment for Türkiye. The Antalya–Alanya Motorway will drastically cut travel time and will positively contribute to the region's tourism, trade, and employment. Limak is determined, as always, to deliver the project on time, with the highest standards of quality and safety."
Commitment from creditors was 2.1 times the loan amount
A consortium of development banks, commercial banks and sovereign funds provided the €1.7 billion loan for the Antalya-Alanya Motorway Project.
Development banks include the Asian Infrastructure Investment Bank (AIIB), the Islamic Development Bank (IsDB), the Black Sea Trade and Development Bank (BSTDB) and the Islamic Corporation for the Development of the Private Sector (ICD), as well as Akbank, Bank of Bahrain and Kuwait (BBK), Deutsche Bank, Garanti BBVA, Industrial and Commercial Bank of China (ICBC), Kuveyt Türk, Qatar National Bank (QNB), Vakıfbank and Ziraat Bank. Furthermore, as part of the consortium, the Silk Road Fund, operating under the Belt and Road Initiative, made its first long-term investment in Türkiye. Commitment received from banks and financial institutions was 2.1 times higher than the loan amount, confirming the project's credibility in international financial markets.
In line with the long-term sustainability strategies of Limak Holding, a notable aspect of the project's financing is its sustainability-linked loan structure. The Antalya-Alanya Motorway Project will be implemented in compliance with the environmental and social requirements of international financial institutions, making it one of Türkiye's pioneering infrastructure projects. ISS Corporate, an independent international institution, has provided a Second Party Opinion confirming the alignment of the loan with the Sustainability-Linked Loan Principles (SLLP). In this regard, the project's sustainability-linked performance targets include obtaining Envision certificate — the highest global sustainability standard in the infrastructure sector — as well as ensuring energy supply from renewable sources, strengthening the EV charging infrastructure through investments exceeding specifications, and supporting equal opportunities at all levels to increase the employment rate of women.
17.7 billion lira savings yearly
The Antalya-Alanya Motorway Project will comprise a total of 122 kilometers, including 84 kilometers of motorway and 38 kilometers of connecting roads. Starting at the Serik Intersection, the motorway will head east along the corridor along the foothills of the Taurus Mountains, ending north of Konaklı at the Alanya Intersection. It will include seven intersections, 16 viaducts and five tunnels, as well as four motorway service facilities. The design speed has been set at 140 km/h for the main motorway and 110 km/h for the connecting roads. Shorter travel times and reduced traffic congestion are expected to result in time savings equal to 16.9 billion lira and fuel savings equal to 800 million lira, with total annual savings reaching 17.7 billion lira. The motorway will also contribute significantly to environmental sustainability by reducing annual carbon emissions by around 47 thousand tonnes.