Athens Airport €806M Bond Loan Expansion

Contained in the Deal

A Finance Month-to-month “Contained in the Deal” characteristic

Sector: Infrastructure / Aviation / Challenge Finance
Transaction Kind: Secured Bond Loan Financing
Deal Dimension: €806 million
Lender: Alpha Financial institution
Deal Standing: Accomplished
Completion Date: October 2025
Last Maturity: 2042

Contained in the Deal is Finance Month-to-month’s transaction characteristic combining unbiased deal protection with in-depth advisor perception into how complicated transactions are structured and executed.

Deal Overview

Athens Worldwide Airport has secured an €806 million secured bond mortgage to finance a significant multi-phase enlargement programme that may enhance the airport’s capability to 50 million passengers yearly by 2045.

The financing, backed by Alpha Financial institution, kinds a part of a broader €1.35 billion infrastructure funding plan aimed toward upgrading Greece’s largest and busiest airport. The primary part of works is predicted to begin in early 2025 and run by 2028, growing annual passenger capability from roughly 26 million to 33 million.

The enlargement consists of an 81,000 sq. metre enlargement of the primary terminal, extra plane stands and passenger gates, upgraded baggage dealing with methods, a brand new runway with 32 plane slots, a brand new VIP terminal, expanded highway entry, and a multi-storey parking facility.

Alongside the brand new bond mortgage, amendments and restatements had been applied throughout 4 current main bond loans initially issued in 2019, 2022, and 2024. The transaction required coordination between a number of Greek systemic banks and concerned complicated alignment of current finance and safety documentation.

Koutalidis suggested Alpha Financial institution on the brand new financing and in addition suggested the syndicate of Greek systemic banks on the modification and restatement of the prevailing bond loans.

The transaction displays continued funding in aviation infrastructure throughout Europe, underpinned by sturdy passenger progress and rising tourism demand in Greece.

Transaction Context

Passenger site visitors at Athens Worldwide Airport reached 24.6 million within the first 9 months of 2024 — a 13.3% enhance in comparison with the identical interval in 2023. Complete revenues rose 9.8% to €509 million, whereas adjusted EBITDA elevated 16.9% to €339.9 million.

The airport’s monetary efficiency strengthened the inspiration for long-term infrastructure financing, supporting the structuring of the brand new secured bond mortgage with a closing maturity extending to 2042.

The financing construction permits for a number of drawdowns aligned with development milestones. On the identical time, amendments to current bond loans had been required to make sure consistency throughout the broader financing framework whereas preserving the autonomy of every particular person instrument.

The designation of the brand new enlargement bond mortgage as “Designated Debt” beneath the Airport Improvement Settlement added a further layer of structural complexity.

Contained in the Deal: Advisor Interview

Ioannis Kaptanis

Accomplice, Koutalidis
Position: Authorized Advisor to Alpha Financial institution and Syndicate of Greek Systemic Banks

How was the €806M secured bond built-in into AIA’s current multi-tranche financing construction?

We suggested Alpha Financial institution on the €806 million secured bond mortgage and, in parallel, suggested the syndicate of 4 Greek systemic banks on amendments and restatements of 4 current bond loans issued by Athens Worldwide Airport.

These amendments had been needed in mild of the brand new financing. They concerned changes throughout your entire set of finance and safety paperwork to make sure alignment between the prevailing loans and the brand new bond mortgage, whereas preserving their autonomy and particular person traits.

The work was in depth and carried out beneath tight deadlines. The alignment course of required cautious structuring to keep up consistency throughout a number of devices with out compromising the integrity of every facility.

What had been the principal authorized and structural complexities in synchronising the brand new bond with AIA’s legacy services?

Though the brand new bond mortgage adopted the precedent framework of earlier AIA financings, negotiations occurred concerning each enterprise and structural points.

One explicit complexity was the classification of the enlargement bond mortgage as “Designated Debt” for the needs of the Airport Improvement Settlement. This required extra contractual documentation and coordination between stakeholders.

On the identical time, a parallel workstream centered on guaranteeing that amendments to current bond loans had been correctly synchronised with the phrases of the brand new financing. This dual-track course of demanded shut collaboration between the corporate, Alpha Financial institution, the banking syndicate, and each native and worldwide counsel.

What extra structuring concerns arose from the ‘Designated Debt’ classification beneath the Airport Improvement Settlement?

Publicly introduced plans point out that the primary part of enlargement will start in early 2025 and be accomplished by 2028, growing annual capability to 33 million passengers.

The broader plan targets capability of fifty million passengers by 2045. The mission consists of terminal enlargement, extra plane slots, runway enhancements, VIP services, parking infrastructure, and surrounding highway community upgrades.

The bond mortgage construction permits for a number of drawdowns aligned with the progress of development works, guaranteeing that financing is deployed effectively all through the mission lifecycle. The ultimate maturity date in 2042 aligns with the long-term infrastructure horizon of the enlargement.

How had been lender protections and drawdown mechanics structured to assist a long-dated infrastructure financing by 2042?

The enlargement of Greece’s main worldwide gateway is predicted to have a direct affect on tourism and transport sectors.

Elevated capability will enable Athens to accommodate rising passenger volumes, notably throughout peak vacationer seasons. Enhanced services and expanded runway capability can also appeal to extra airways and new routes, strengthening Greece’s connectivity with international markets.

Past aviation, elevated passenger flows usually generate multiplier results throughout hospitality, retail, transport companies, and regional economies. Infrastructure enlargement of this scale also can generate direct and oblique employment alternatives throughout each development and operational phases.

As tourism stays a big contributor to Greece’s GDP, airport capability enlargement might function a catalyst for broader financial progress and regional growth.

What ongoing authorized oversight is required in the course of the phased implementation of the enlargement financing?

We’ll proceed advising Alpha Financial institution on drawdowns all through the length of the bond mortgage. This consists of reviewing circumstances precedent, making ready needed documentation, and issuing authorized opinions as required.

We may even assist any post-closing amendments or technical changes which will come up in the course of the implementation of the enlargement plan. Lengthy-term infrastructure financings require ongoing authorized coordination, and we stay engaged all through the lifecycle of the mission.

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