Meridiam closes €215m Madagascan airport financing

Backed by five debt providers, the funds will be used to expand two airports on the island won in a concession in 2015.

France-based fund manager Meridiam has closed financing on a €215 million expansion of two airports in Madagascar.

Alongside its consortium partners, Aéroports de Paris Management (35 percent), Bouygues and Colas (20 percent), Meridiam (45 percent) will plug the funds into the expansion of terminals and runways at the Antananarivo Airport in Madagascar’s capital and at Nosy Be Airport in the north of the island off the southeast coast of Africa.

The Investec-managed Emerging Africa Infrastructure Fund and Proparco have each provided debt financing of €25 million and are joined by the International Finance Corporation, the OPEC Fund for International Development and the Development Bank of Southern Africa.

“This is the first airport infrastructure project EAIF has supported and one of the most significant in terms of macro and micro economic development,” said Nazmeera Moola, head of the EAIF. “Madagascar’s ability to compete globally, particularly in tourism and trade markets, will be boosted, as will its internal trade potential.”

The group was awarded the 28-year concession in 2015 and latest figures point to 845,000 passengers at Antananarivo in 2016 and 147,000 passengers at Nosy Be. The consortium is aiming to lift these numbers to up to 1.8 million and 500,000 respectively.

The country is expected to be one of the top 10 fastest-growing markets by percentage in terms of additional passengers per annum over the next 20 years, doubling in size each decade, according to the International Air Transport Association.