Banks strike debt deal to take stake in Istanbul’s cruise port

Five banks will take a 49 percent stake in Istanbul’s luxury cruise terminal after striking a debt restructuring deal worth €1.02 billion ($1.1 billion) with Dogus Group, owned by Turkish billionaire Ferit Şahenk.

Under the agreement, Yapi Kredi Bankasi AS will acquire up to a 13 percent stake in Galataport Istanbul Liman İşletmeciliği ve Yatırımları (Galataport).

Turkiye Garanti Bankasi AS will take about 12 percent, Turkiye Is Bankasi AS 7 percent and Turkiye Sinai Kalkinma Bankasi AS 5.23. The Turkish operation of Qatar National Bank will also acquire nearly 5 percent.

The banks issued separate statements on the Public Disclosure Platform. The lenders have granted a three-year repurchase right to Doğuş Galataport Gayrimenkul Yatırımları ve Ticaret (Dogus Galataport).

The deal is expected to be completed by the end of the year.

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Galataport, built along a 1.2km stretch of the Bosphorus, hoped to attract 25 million visitors and 1.5 million passengers per year, Bloomberg reported.

Construction delays and an economic slowdown in the country dampened those expectations.

Since its opening in 2021, the port has struggled to generate adequate revenue and cash flow.