The EBRD acquires a stake in the concessionaire of Sofia Airport
The European Bank for Reconstruction and Development (EBRD) supports the development of Sofia Airport with an indirect capital investment in SOF Connect, the company that is the concessionaire of the capital's airport. The EBRD's total investment of EUR 74.3 million will include an equity investment of EUR 58 million and an additional EUR 16.3 million contingent equity exposure, the bank said in a statement.
The capital investment comes after a 50m-euro loan to SOF Connect earlier this year to support the airport's transformation. SOF Connect is a joint venture between Meridiam, an asset manager specializing in public-private partnership projects, Munich Airport and the Austrian construction company Strabag, and the company began operations in April 2021. Among other things, the company is committed to a significant investment plan at the airport, which includes the construction of a new, third terminal over the next 10 years and the improvement of the environment, health and safety.
Sofia Airport is the main international airport in Bulgaria and a center for economic development. The arrival of a leading private sector operator is expected to increase the airport's competitiveness and significantly improve service standards by stimulating long-term growth and development in the country's capital and beyond, the EBRD said.
Meridiam, the majority owner of SOF Connect, has set itself the goal of turning the airport into a model of sustainable development. As part of the concession agreement, the operator is committed to improving corporate climate governance and implementing the recommendations of the Working Group on Climate Financial Disclosures. The airport will strive to become climate neutral by 2036.
Anka Ioana Ionescu, EBRD Director for Bulgaria, said: “This is a remarkable investment for us. We are happy to support the development of Sofia Airport as a key infrastructure asset for Bulgaria. Together with our partners, we see this as a market solution with a view to achieving sustainable development. As an investor in Meridiam Infrastructure's Eastern Europe Fund and Meridiam Infrastructure Europe III, the EBRD is pleased to join its long-term partner, Meridiam, in this transaction. ”
Thierry de, CEO and founder of Meridiam, said: "We look forward to partnering with the EBRD on this important project, which is a major improvement in the sustainability of Bulgarian infrastructure and will contribute to its economic recovery after the Kovid crisis."
The EBRD is a major investor in Bulgaria, with the bank focusing on increasing the competitiveness of local companies in their work at home and abroad. Projects for modern, sustainable infrastructure and development of financial products and capital markets are financed against the background of the country's plans to adopt the euro. To date, the EBRD has invested 4 billion euros in the Bulgarian economy through 267 projects.