Lima Airport Partners (LAP), part of the Fraport Group of Germany, has closed a US$450 million debt financing to develop the airside programme of the expansion of the Jorge Chavez International Airport in Lima, Peru.
LAP has been part of German airports group Fraport since 2001. Four international banks – Sumitomo Mitsui Banking Corporation (SMBC), KfW IPEX-Bank, the Bank of Nova Scotia, 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.
A statement from KfW IPEX said that LAP’s airside development is strategically important not only for Lima Airport but also for Peru and South America. Lima Airport serves as a major hub for the South American market. The airside development comprises a new 65-metre-high air traffic control (ATC) tower, a new second runway with a length of 3,480 metres, 10 kilometres 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 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.
"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," comments Dr. Matthias Zieschang, Fraport AG’s chief financial officer. "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.”
Based in Frankfurt, Fraport owns and manages airports worldwide, including Indira Gandhi International Airport in Delhi and Xian Xianyang International Airport in northwestern China.
It has been hit hard by the global slump in travel demand as a result of the corona pandemic. In August 2020, Frankfurt Airport served some 1.5 million passengers, representing a 78.2% decline year-on-year. During the January-August 2020 period, accumulated passenger traffic at Frankfurt Airport dropped by 68.4%. At Lima Airport, traffic fell by 95.4% to 101,866 passengers amid widespread travel restrictions.