Russia’s VEB and airport management group the Air Gates of the Northern Capital (AGNC) have agreed a credit facility for R10bn (US$333.3mn) to finance a construction project at St Petersburg’s Pulkove airport.
The financing, which has a maturity of 15 years, will go towards the first phase of the project for the renovation of Pulkove airport’s terminal one and the building of an entirely new terminal.
VEB will not only finance the scheme, it also intends to raise long-term foreign investments for the project.
The project will also receive financing from the IFC, the European Bank for Reconstruction and Development, the Eurasian Development Bank, the Northern Investment Bank and the Black Sea Trade and Development Bank who will jointly provide credit resources in foreign exchange for approximately €500mn (US$643.4), which also has a 15 year tenor.
The deal is a first for Russia in securing a syndicate of banks and international institutions arranged for financing a project of this magnitude and complexity on the basis of project financing.
Last Updated May 05, 2010
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