Beijing Airport in $7b credit line
Beijing Capital International Airport, which manages China's largest airport, has been granted an eight billion yuan (about HK$7.49 billion) credit line for the airport's expansion.
The credit facility was granted by China Development Bank - the country's largest policy bank and largest development financing institution - on Tuesday, mainland media reported yesterday.
Apart from funding the third phase of the airport's expansion project, the credit line would also be drawn on to finance the company's other investment activities.
Li Peiying, the chairman of China's No 1 airport operator, said the third-phase expansion would cost the company 12.5 billion yuan in the next five years.
In the third phase, the airport would add one runway, one terminal building and other related infrastructure.
The airport last year saw its passenger throughput reach 24 million. During the first half of this year, passenger throughput rose 14 per cent to 12.54 million.
After the expansion, the airport's annual passenger throughput is expected to increase to 60 million.
The expansion of the capital's airport is also seen as preparation for the 2008 Olympics, for which Beijing is the host city.
The newly granted credit line is the latest example of an acceleration in the granting of loans to the capital's aviation industry by local banks.
More than 65 billion yuan in credit had been extended to Beijing-controlled carriers by domestic banks between last November and June, according to a report from the Sydney-based Centre for Asia Pacific Aviation in July.
