Santiago airport project reaches financial close

Nuevo Pudahuel, a consortium led by Aéroports de Paris, has reached financial close on the expansion of the Arturo Merino Benitez airport in Chile.

Nuevo Pudahuel has secured a total of $513 million in loans from European and local banks for the expansion of the Arturo Merino Benitez Airport in Santiago, Chile.

The consortium, which comprises Aéroports de Paris (45 percent), Vinci Airports (40 percent) and Italian construction firm Astaldi (15 percent), reached financial close on the project nearly 18 months after being awarded the 20-year concession.

According to a statement filed with Chile’s securities regulator, Banca IMI, Crédit Agricole, Société Générale, CaixaBank and Banco Santander are providing $275 million. Local lenders Banco de Crédito e Inversiones, Banco BICE and Banco Santander’s Chilean subsidiary have offered an additional 155 billion pesos ($234.3 million; €213.3 million).

Under the terms of the agreement, the consortium must invest a total of $700 million during the term of the contract. Nuevo Pudahuel will receive 22.14 percent of profits for its part in the PPP over the period, offering the government a 77.56 percent profit share.

The project entails the renovation of existing installations and the redesign and extension of the existing terminal; the funding, design and construction of a new 175,000-square-foot international terminal to increase capacity to 30 million; and the continued operation and commercial development over the contract period.

Arturo Merino Benitez served more than 17 million passengers in 2015, according to Nuevo Pudahuel's website, making it the seventh-busiest airport in South America.