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Budapest Airport | source: bud.hu

EBRD in financial restructuring of Budapest airport

D&T
July 24, 2017

The European Bank for Reconstruction and Development (EBRD) is taking part in a financial restructuring of the company that operates the Ferenc Liszt international airport in Budapest with the aim to attract greater international investment and improve the airport’s operational performance.

According to EBRD, it will provide Budapest Airport Co. Ltd. with a senior note of EUR 100 million. This is part of an overall financing package worth up to EUR 1.32 billion – split between a privately placed senior note facility of EUR 525 million and a banking facility of EUR 795 million – to amend and extend existing debt facilities maturing at the end of 2019 and 2020.

Budapest Airport is ultimately owned by the international investors’ group AviAlliance GmbH with 55.44% (owned by PSP Investments); Malton Investments with 23.33% (owned by GIC Infra Ltd); and CDPQ with 21.23%. The airport operator holds a 75-year concession to upgrade, operate and manage the Ferenc Liszt International Airport. In 2016 the airport registered almost 11.5 million passengers. Hungary’s efforts to boost the number of tourists visiting the country are expected to benefit the future utilisation of the airport.

As Sue Barrett, EBRD Director, Transport, said, “we are very pleased to join this effort and support this flagship project for Hungary. The package will encourage the introduction of new capital market structures for mature infrastructure projects, develop secondary market transactions for public-private partnership projects attracting leading institutional investors and allow – last, but not least – customers of Budapest Airport to benefit from an improved operating performance.”

Since the beginning of its operations in Hungary, the EBRD has invested over EUR 2.9 billion in some 175 projects in the country. Strengthening infrastructure development and local capital markets are among the Bank’s priorities in accordance with its concept of transition qualities, which says that successful and sustainable economies must be competitive, resilient, green, well-governed, integrated and inclusive.

D&T

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