EBRD takes equity position in Sofia Airport – sustainability the goal?

Premium Analysis

Typically, regional investment banks in Europe, Asia, Africa and elsewhere are content to make loans to airport authorities, and increasingly to private sector operators and investors, to help them build necessary infrastructure, and especially so where this helps improve economic performance and GDP.

The European Bank for Reconstruction and Development follows (EBRD) such a pattern, working essentially in the old political Eastern Bloc of Europe, and it has a track record of loan assistance to airports.

But now the EBRD has invested into an equity stake at Sofia Airport, which was concessioned earlier this year to a fund-led consortium following an acrimonious transaction and numerous appeals by the losing parties. It does so with a mandate to develop infrastructure "in a sustainable manner". Other such deals could follow; if so, that would change the ball game for private sector investors.

This report questions the implications for airport transactions in the future, and if 'sustainability' will dominate them.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 2,887 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.