UAE’s ADCB finances India airport expansion

ABU DHABI - Abu Dhabi Commercial Bank has closed a $125 million deal to finance an airport expansion in India and may lend over one billion dirhams this year for infrastructure projects in Asia’s fastest growing economy, the bank’s chairman said on Tuesday.

By (Reuters)

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Published: Tue 20 Mar 2007, 7:52 PM

Last updated: Sat 4 Apr 2015, 10:53 PM

Saeed Al Hajiri said ADCB underwrote $125 million of $162 million to finance the expansion of the GMR Hyderabad International Airport expansion.

“The transaction is an important step in the continued efforts of the bank to diversify into strategically important markets like India and in the area of infrastructure,” Al Hajiri told Reuters.

“There are huge opportunities for infrastructure financing in the Indian market and we will assess them. We could easily exceed over one billion dirhams in financing such projects this year.”

ADCB was the single largest lender and only foreign bank in the $162 million transaction where two Indian banks also participated, he said.

Earlier, ADCB financed a build-own-transfer (BOT) road project in India, underwriting $55 million.

Ervin Knox, CEO of ADCB, told Reuters that there are major flows between India and Abu Dhabi and the bank also plans to enter the asset management business in India.

“The bank is looking at exposures in quite a few deals in sectors like steel, oil and gas and infrastructure over the next six months. They are fairly big deals,” he said.

“Our strategic intent is to get into India and become active and build our exposure book.”

GMR Hyderabad International Airport Company, the project company will start repaying the dollar debt after two years of starting operations over a period of 14 years.

The airport expansion is scheduled for completion in March 2008.

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