BERD invests 50 million euros in the first bond issuance of Sofia Airport

The European Bank for Reconstruction and Development supports a financing package of 450 million euros for the operator SOF Connect AD. The funds aim to refinance, modernize airport infrastructure, and develop the capital market in Bulgaria through a bond issuance listed on Euronext Dublin.

EBRD has invested 50 million euros in the first bond issuance of SOF Connect AD, the operator of Sofia Airport, as part of a financing package of 450 million euros.

In brief

1. EBRD has subscribed 50 million euros in two senior bonds issued by SOF Connect AD.

2. The issuance is part of a financing package of 450 million euros, which includes refinancing bonds, investment bonds, and a loan facility for CAPEX.

3. The bonds are listed on Euronext Dublin, being the first issuance of this type of debt instrument made by a Bulgarian entity.

4. The financing will support the long-term financial structure of Sofia Airport and the modernization of airport facilities.

5. Sofia Airport aims to become completely carbon neutral by 2036.

The European Bank for Reconstruction and Development supports the development of the capital market in Bulgaria and the financial resilience of Sofia Airport through a 50 million euro investment in the first bond issuance made by SOF Connect AD, the airport operator.

EBRD has subscribed 50 million euros in two senior bonds issued by SOF Connect AD, as part of a financing package of 450 million euros.

The package includes refinancing bonds, capital expenditure bonds, and a loan facility for investments. The transaction supports both the sustainable development of Bulgaria's main airport and the country's long-term economic objectives.

EBRD's investment in refinancing bonds will contribute to strengthening the long-term financial structure of the airport. The commitment to investment-dedicated bonds will finance the modernization of airport facilities.

The bonds are listed on Euronext Dublin. According to EBRD, this is the first issuance of this type of debt instrument made by a Bulgarian entity.

The issuance attracted institutional investors who had not previously invested in Bulgaria, expanding the country's investor base and setting a benchmark for future transactions.

"We are pleased to participate in this benchmark transaction. It serves two of our priorities in Bulgaria: supporting more innovative capital market structures that mobilize investors and establish new financing benchmarks, and improving regional connectivity by contributing to the development of a modern and competitive airport in Sofia," said Elena Gordeeva, EBRD Director for Infrastructure in Europe.

Sofia Airport is Bulgaria's main international gateway and a strategic transport asset for the country.

SOF Connect AD has operated Sofia Airport since 2021, based on a long-term concession agreement. The concession is the largest in the transport sector in Bulgaria and the first major public-private partnership established in the country in over two decades.

SOF Connect AD is owned by the French infrastructure investor Meridiam, an asset manager specialized in the development, financing, and management of public-private infrastructure partnerships. Meridiam is an existing client of EBRD.

EBRD is an indirect minority shareholder of the airport through its participation in Meridiam investment vehicles.

The bank has a history of supporting public-private partnership structures in the economies where it operates. EBRD supported the Bulgarian government in the concession process for Sofia Airport in 2020, contributed to the debt package in 2021, and subsequently took an indirect equity stake.

Despite the impact of the Covid-19 pandemic on aviation and passenger numbers, Sofia Airport has modernized its infrastructure, improved passenger services, and set the goal of becoming completely carbon neutral by 2036.

Over 50 million euros are dedicated to decarbonization measures.

EBRD is a significant institutional investor in Bulgaria. The bank has invested over 5 billion euros in 320 projects in the country to date.

The transaction links the modernization of airport infrastructure to the development of the capital market in Bulgaria. By listing the bonds on Euronext Dublin and attracting new institutional investors to the Bulgarian market, the issuance can set a precedent for future financing of companies and infrastructure projects in the country.

Sofia Airport is a strategic asset for Bulgaria's connectivity, serving as the main international entry point. Its modernization is relevant for transport, tourism, investment, and regional economic integration.

The concession of Sofia Airport, operated by SOF Connect AD since 2021, is part of the use of public-private partnerships for financing and managing large transport infrastructure. EBRD has been involved in this process since the concession phase and continues to support the airport's financial structure.

The goal of carbon neutrality by 2036 also introduces a climate dimension to the airport's modernization, through investments dedicated to decarbonization.

https://2eu.brussels/ro/stiri/berd-investeste-50-de-milioane-de-euro-in-prima-emisiune-de-obligatiuni-a-aeroportului-sofia