Athens, Greece, March 27, 2017—IFC,
a member of the World Bank Group, is financing the privatization
of 14 Greek regional airports through two long-term loans to Fraport Greece,
a joint venture of Fraport AG Frankfurt Airport Services Worldwide and
Copelouzos Group. The consortium was recently awarded a 40-year concession
to modernize and operate the airports, which are in some of Greece’s best
known tourist destinations.
IFC is providing Fraport Greece with a total of €154 million over two
18-year maturity loans. They are part of a nearly €1.0 billion long-term
debt package put together by five international and Greek financial institutions.
IFC is the only lender providing euro interest rate hedging swaps to help
Fraport contend with potential fluctuations in interest rates.
Alexander Zinell, Fraport Greece CEO, said: "The project for the concession
of the 14 airports is a bold and ambitious project which aims to develop
and modernize the airports’ facilities as well as to implement a
new operating mentality. All the above will result in the increase of passenger
traffic and the improvement of the travel experience. This collaboration
between Fraport Greece and IFC is the continuation of very successful partnerships
Fraport still enjoys with the institution at Lima Airport and St. Petersburg
Pulkono Airport. We look forward to continuing our collaboration with IFC
in the future.”
The first loan from IFC, worth €92 million, will enable Fraport Greece
to implement the upgrade of the infrastructure and services at Thessaloniki,
Kerkyra (Corfu), Chania (Crete), Kefalonia, Zakynthos, Aktion, and Kavala
airports. The second €62 million loan will favor the company’s plans
to the modernize and expand Rhodes, Kos, Samos, Mytilene, Mykonos, Santorini,
and Skiathos airports
Tourism is a vital part of the Greek economy, accounting for approximately
16 percent of gross domestic product and nearly 18 percent of jobs. The
14 airports currently serve half of Greece’s international passengers
and have reached their capacity limit. Once completed, the upgrades and
expansions are expected to almost double the terminal area and raise the
number of served passengers by 20 percent. That will allow them to accommodate
up to 27.5 million passengers in four years. The upgrades will include
expansions, internal renovations, and increased retail and travel services.
They will also create significant operational efficiencies for the airports.
Dimitris Tsitsiragos, IFC Vice President, said: “Well-managed airports
around the world have proven to serve as economic engines. This landmark
concession is an excellent example of how the private sector can step in
to support the Greek economy by generating revenues for the government,
creating jobs, and boosting confidence in vital sectors. IFC’s involvement
in tourism and infrastructure can attract additional investments and encourage
new development projects to promote economic growth.”
IFC and Fraport have a long-standing partnership that includes the reconstruction
and expansion of St. Petersburg’s Pulkovo airport in 2010 and IFC’s investment
in Lima Airport in 2007.
Over the past 10 years, IFC committed over $1.6 billion for the construction,
expansion, and modernization of airport infrastructure in over 10 countries.
In 2015 alone, this resulted in 15.4 million additional passengers served,
2,605 jobs supported, and $341 million in concessions fees and taxes paid
IFC’s engagement in Greece is part of a larger effort by the World Bank
Group to support economic growth in the country. The World Bank, through
the International Bank for Reconstruction and Development, provides advice
to the Greek government and IFC supports the private sector through investments.
Over the last few years, the World Bank Group has supported Greece in improving
social safety nets for the most vulnerable and helped the country to become
a more attractive venue for businesses and investors. With the World Bank
Group’s help, Greece has already made measureable improvements in its
business climate, a big step forward and a strong signal to firms that
Greece is open for business.
For more information about Fraport Greece, please visit: http://www.fraport-greece.com
For more information about Fraport, please visit: http://www.fraport.com/en.html
For more information about Copelouzos Group, please visit: http://www.copelouzos.gr/
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org.