Budapest Airport financing (EBRD-49046)

Countries
  • Hungary
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 7, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
AIRPORT HUNGARY TANACSADO KFT
The holder of the loan, grant, or other investment.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 114.03 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 100 million
Converted using 2017-07-07 exchange rate.
Loan Amount (USD)
$ 114.03 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 100 million
Converted using 2017-07-07 exchange rate.
Project Cost (USD)
$ 1,505.20 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported 1,320.00 million
Converted using 2017-07-07 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 22, 2018

Disclosed by Bank Jul 21, 2017


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Project Description

According to EIB website, the project is the provision of €100 million in a senior note facility as part of a €1.32 billion financing package to restructure the balance sheet of Budapest Airport Kft. The funds will be used to amend and extend existing debt facilities maturing at the end of 2019 and 2020. The new financing package will be split into a banking tranche of €795 million and an institutional investor tranche of €525 million. EBRD will participate in the institutional investor tranche for €100 million. It will support Budapest Airport Kft in its efforts to raise long-term capital from non-banking debt providers (e.g. pension and insurance companies), most of which would invest into Hungarian infrastructure debt securities for the first time.

The project supports the development of a PPP secondary capital market which attracts institutional investors. A successful institutional tranche placement will have a significant demonstration effect in the market. As such, the Bank's participation will help Budapest Airport to extend the maturity of its existing debt and will also act as a catalyst for attracting international institutional investors.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Contact Information

Project Contact: René Defize, EBRD
Email Address: DefizeR@ebrd.com
Telephone No.: +44 207 338 8377

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.