KfW IPEX-Bank finances Airside Development of Airport in Lima
News from 2020-09-14 / KfW IPEX-Bank
Lima Airport Partners (LAP), part of the Fraport Group since 2001, has signed a US$450 million financing agreement for its airside development program at Jorge Chávez International Airport in Lima, Peru. Four international banks – comprising KfW IPEX-Bank, the Bank of Nova Scotia, Sumitomo Mitsui Banking Corporation (SMBC), and Banco Bilbao Vizcaya Argentaria – are providing the loan. Fraport’s and LAP´s finance teams managed the transaction, while SMBC acted as financial advisor.
LAP’s airside development is strategically important, not only for Lima Airport but also for Peru and South America. Lima Airport (LIM) serves as a major and popular hub airport for the South American market. The airside development comprises a new 65-meter-high air traffic control (ATC) tower, a new second runway with a length of 3,480 meters, 10 kilometers of taxiways, a 250 hectare advanced mid-field apron area for increased aircraft parking capacity, new operational facilities for fire and rescue services, plus beacons and navigation aids, surveillance systems, and other systems. Construction of the ATC tower and airfield buildings already began in July and is scheduled to be completed late in 2021. In the coming weeks, construction will start on the new runway which is scheduled to go into operation by the end of 2022.
Dr. Matthias Zieschang, Fraport AG’s chief financial officer, explained the importance of the financing: “This excellent transaction is of paramount significance for the development of Lima Airport. Secured in a very challenging environment, this financing agreement sends out a strong and positive signal about Lima Airport Partners and the entire Fraport Group. Furthermore, the transaction underscores the strong interest and demand from capital markets for financing well-managed airports that have a long-term and positive perspective – such as Lima Airport Partners with its major South American hub airport.”
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About Fraport AG
One of the leading players in the global airport business, Fraport AG offers a wide range of operational and management solutions based on over 95 years of aviation expertise. Fraport’s portfolio of companies spans four continents with activities at 31 airports worldwide. In fiscal year 2019 (Dec. 31), Fraport generated sales of €3.7 billion and profit of about €454 million. More than 182 million passengers in 2019 used airports around the world in which Fraport has at least a 50 percent stake. In its Mission Statement, Fraport places the focus on its customers. The Group’s commitment to ensuring a “good trip” to all passengers and travelers is also reflected in its corporate slogan: “Gute Reise! We make it happen”. This applies to all of Fraport’s business activities and services at Germany’s largest aviation hub in Frankfurt and the Group’s airports worldwide.