Erste Bank finances Dubrovnik airport extension

The opening of the new Terminal B at Dubrovnik airport, the third-largest airport in Croatia, follows a €23.5m private financing led by Erste Bank, the Vienna-based banking group focused on Central and Eastern Europe.

Erste Bank provided €19 million in financing for the new Terminal B at Dubrovnik airport, which has consequently more than doubled its size from 6,320 square metres to 13,740 square metres. The new terminal is in anticipation of an expected increase in passenger numbers.

In a statement, Erste Bank said the direct private financing was “still quite a rare financing instrument in Croatia, although it is currently gaining momentum”. The total cost of the project amounted to €23.5 million, with the remaining €4.5 million coming from Dubrovnik airport’s “own funds”.

Dubrovnik: passenger

“As Croatia is best reached by air and tourists come from all over Europe, it is vital that the airport’s size and capacity can match its international demand,” said Werner Weihs-Raabl, head of infrastructure finance and public sector at Erste Group, in the statement. “By helping double the airport size, we have now achieved this.”

Dubrovnik has become a popular destination for high-spending tourists from the UK, France, Germany, Spain, Italy and Ireland. It has been favoured by a trend towards tourists preferring short trips rather than long haul.

In March this year, Hungary’s M6 motorway (phase III) reached completion. Erste Bank was lead arranger for the €520 million 30-year public-private partnership, committing €35 million. The concession was awarded to a consortium formed of Bilfinger Berger, Porr and Egis.