Belgrade, Serbia, December 21, 2018—IFC,
a member of the World Bank Group, is providing a €182 million financing
package to the new private concessionaire of Belgrade Airport Nikola Tesla,
VINCI Airports Serbia, a subsidiary of VINCI Airports SAS. The concessionaire
will develop and upgrade Belgrade’s Nikola Tesla Airport, to boost Serbia’s
tourism and transport industry and encourage economic growth.
VINCI Airports SAS, one of the largest airport operators in the world and
a member of France’s VINCI SA group, was awarded the concession to develop
the airport in January, following a competitive public tender. The 25-year
contract includes financing the airport’s upgrading, expansion, operation
and maintenance and is expected to almost triple its passenger capacity
by the end of the concession.
IFC’s financing package comprises a direct €72 million A loan and a €110
million B loan under IFC’s syndication umbrella.
European Bank for Reconstruction and Development (EBRD) is providing the
same amounts in A and B loans. IFC, EBRD, Deutsche
Investitions- und Entwicklungsgesellschaft (DEG)
and Societe de Promotion et de Participation pour la Cooperation Economique
SA (Proparco), were lead arrangers on the project. Six commercial banks
(Banca IMI, Unicredit, Erste Group, Kommunalkredit, CIC and Societe General)
are mobilized to participate in the financing through IFC’s and EBRD’s
B loan umbrella.
“We are delighted to support the entry of a global leader in airport operation
to Serbia, helping Nikola Tesla Airport reach its full potential for all
stakeholders,” said Thomas Lubeck, IFC Regional Manager for Central and
Southeast Europe. “This is the first airport concession in the country
and we hope it will serve as a model for how the private sector can deliver
efficient solutions in infrastructure in the region.”
The financing deal is the latest of a series of IFC investments in emerging
market airports, whose upgrades can provide an economic boost including
through increased tourism. IFC has committed and mobilized over $2.1
billion for airport projects around the world since 2005.
Cheryl Edleson Hanway, IFC’s Regional Senior Manager for Infrastructure
and Natural Resources said: “IFC is pleased to bring its global airport
financing expertise to Serbia and to support VINCI as it takes over private
operation of the Nikola Tesla Airport. We are hopeful that this flagship
transaction serves as a positive regional example of successful private
participation in infrastructure that can be replicated in other markets
seeking to follow a similar path.”
Total costs for the Belgrade airport project are estimated at €982 million,
including an upfront concession fee of €501 million payable to the government
of Serbia, and approximately €380 million in capital expenditures and
development costs. The upgrades are expected to increase the airport’s
capacity to a service level of more than 14 million passengers annually
by the end of the concession period in 2043, from 5.3 million in 2017.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org