Fraport: Lima Airport signs $450 million financing for airside development
Lima Airport Partners (LAP), part of the Fraport Group since 2001, has signed a US$450 million financing agreement for its airside development program at Jorge Chávez International Airport in Lima, Peru. Four international banks – comprising KfW IPEX-Bank, the Bank of Nova Scotia, Sumitomo Mitsui Banking Corporation (SMBC), and Banco Bilbao Vizcaya Argentaria – are providing the loan. Fraport’s and LAP´s finance teams managed the transaction, while SMBC acted as financial advisor.
LAP’s airside development is strategically important, not only for Lima Airport but also for Peru and South America. Lima Airport (LIM) serves as a major and popular hub airport for the South American market. The airside development comprises a new 65-meter-high air traffic control (ATC) tower, a new second runway with a length of 3,480 meters, 10 kilometers of taxiways, a 250 hectare advanced mid-field apron area for increased aircraft parking capacity, new operational facilities for fire and rescue services, plus beacons and navigation aids, surveillance systems, and other systems. Construction of the ATC tower and airfield buildings already began in July and is scheduled to be completed late in 2021. In the coming weeks, construction will start on the new runway which is scheduled to go into operation by the end of 2022.
Dr. Matthias Zieschang, Fraport AG’s chief financial officer, explained the importance of the financing: “This excellent transaction is of paramount significance for the development of Lima Airport. Secured in a very challenging environment, this financing agreement sends out a strong and positive signal about Lima Airport Partners and the entire Fraport Group. Furthermore, the transaction underscores the strong interest and demand from capital markets for financing well-managed airports that have a long-term and positive perspective – such as Lima Airport Partners with its major South American hub airport.”