Funding secured for airfield upgrade at Lima’s Jorge Chávez International Airport
Fraport owned Lima Airport Partners (LAP) has signed a $450 million financing agreement for an airside development programme at Peru’s Jorge Chávez International Airport.
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 for the upgrade at Peru’s capital city gateway.
According to LAP, the airside development project at Jorge Chávez International Airport (LIM) is strategically important, not only for Lima Airport but also for Peru and South America.
The upgrade involves the construction of a new 65-metre high air traffic control (ATC) tower; a new 3,480m second runway; over 10 kilometres of new taxiways; and a 250 hectare advanced midfield apron area for increased aircraft parking capacity.
Also on the agenda are 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.
Fraport AG’s chief financial officer, Dr Matthias Zieschang, says: “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.”