New financing agreement for Lima airport expansion
Lima Airport Partners (LAP) has signed a $1.25 million financing agreement to help fund the ongoing upgrade of Peru’s Jorge Chávez International Airport (LIM).
The financing for the ongoing development of the Peruvian gateway is being provided by seven banks – BBVA, IDB Invest, KfW IPEX Bank, Mitsubishi UFJ Financial Group (MUFG), The Bank of Nova Scotia, Société Générale, Sumitomo Mitsui Banking Corporation (SMBC).
Fraport, which has a controlling 80.1% stake in the operator of Peru’s capital city airport, and LAP’s finance teams managed the transaction, while SMBC acted as financial advisor.
“This is a landmark transaction. We are pleased by the continuous strong demand from the international capital markets for financing Lima Airport strategic development,” enthused Fraport’s executive director for controlling and finance, Matthias Zieschang.
“More than ever, well-managed aviation hubs like Lima are highly regarded as critical infrastructure and reliable long-term investments. This privately financed infrastructure development underscores our commitment to the long-running Lima airport concession and to Peru.
“We are confidently transforming the Lima hub with future-oriented, flexible, and sustainable infrastructure to meet the aviation challenges in the decades ahead.”
According to Fraport, LAP’s airport expansion is strategically significant for Lima, Peru and South America, as well as for the international aviation industry.
In addition to covering the ongoing construction costs, the new project financing will be used to repay the $ 450 million financing obtained by LAP in 2020.
Already completed and in the process of delivery to the Peruvian Authorities, the airside expansion features the second runway, a new ATC tower for full coverage of the enlarged airfield, taxiways, a firefighting station, plus other ancillary facilities.
LAP contracted the Inti Punku consortium, composed of construction companies SACYR of Spain and Cumbra of Peru, as general contractor for the EPC (Engineering, Procurement and Construction) for the construction of the new passenger terminal building, to commence its operation by January 2025.
The rapidly advancing construction works include the new passenger terminal itself, along with key supporting infrastructure such as aircraft parking stands, a utilities complex, access roads and public parking.