EBRD, IFC syndicate €200m of debt for Pulkovo PPP

The European Bank for Reconstruction and Development and World Bank unit the IFC have jointly raised €200m from a group of eight commercial banks in support of Russia’s Pulkovo airport PPP, which will see the reconstruction and expansion of the St Petersburg airport.

A total of €200 million of debt for the Pulkovo airport public-private partnership (PPP) has been raised by the European Bank for Reconstruction and Development (EBRD) and IFC in a syndication involving eight commercial banks.

Book-runners and mandated lead arrangers participating in the B-loan syndication are: UniCredit Group (€55 million); Standard Bank (€39 million); Espirito Santo Investment (€23 million) and Nordea Bank (€23 million). Also participating as mandated lead arrangers are: DZ Bank Deutsche Zentral-Genossenschaftsbank (€17 million); KfW IPEX-Bank (€16 million); Mediobanca-Banca di Credito Finanziario (€13.5 million); and Raiffeisen Zentralbank Österreich (€13.5 million).

The syndication brings the overall amount raised by the EBRD and IFC for the Pulkovo project to €370 million. Both institutions remain lenders of record for the full amount under an A-/B-loan structure. The maturity of the EBRD and IFC syndicated B-loans is 12 years while that of the A loans is 15 years.

On April 28 this year, Pulkovo reached financial close with the EBRD committing a €100 million A loan to the project, while the IFC’s A loan commitment was €70 million. The EBRD-IFC funding is part of a long-term debt package of about €716 million put together by five international financial institutions and Russia’s Vnesheconombank to finance the reconstruction and modernisation of Pulkovo airport, including the building of a new terminal. 

“This is the first transaction of its kind in Russia financed by commercial lenders, and the fact that this benchmark deal for a landmark Russian infrastructure project was heavily over-subscribed sends a positive signal about the market’s potential appetite for such deals,” Lorenz Jorgensen, EBRD director of syndications, said in a statement.

The equity sponsors for the project include the Northern Capital Gateway, a consortium comprising VTB Capital, Fraport, the owner and operator of Frankfurt Airport, and Horizon Air investments.

Pulkovo Airport was one of a number of Russian infrastructure projects to reach financial close in the second quarter of 2010, meaning that Russia finished top of the global country league table produced by our database InfrastructureInvestor Assets which ranked countries by total value of infrastructure projects reaching financial close during the period.