EBRD backs Sofia Airport’s landmark bond issuance

• EBRD invests €50 million in Sofia Airport’s strategic financing
• Bank’s investment to support upgrade and modernisation of airport facilities
• Landmark international issuance broadens Bulgaria’s investor base, sets new benchmark

The European Bank for Reconstruction and Development (EBRD) is supporting Bulgaria’s capital market development and the financial resilience of Sofia Airport by investing in the first bond issuance by SOF Connect AD, the operator of the airport.

The Bank has subscribed for a total of €50 million across two senior notes issued by SOF Connect as part of a €450 million financing package, which comprise refinancing bonds, CAPEX bonds, and a CAPEX loan facility. This is a landmark transaction supporting both the sustainable development of the country’s main airport and Bulgaria’s long term economic ambitions.

The Bank’s investment in the refinancing bonds will help strengthen the airport’s long-term financial structure while committing to the CAPEX bonds will finance the upgrade of airport facilities.

The bonds are listed on Euronext Dublin, marking the first issuance of this type of debt instrument by a Bulgarian entity. The landmark issuance has attracted institutional investors that have not previously invested in the country, broadening Bulgaria’s investor base and setting a benchmark for future transactions.
Elena Gordeeva, EBRD Director of Infrastructure Europe, said: “We are pleased to participate in this landmark transaction. It serves two of our priorities in Bulgaria: supporting more innovative capital market structures that mobilise investors and set new benchmarks in financing, while also improving regional connectivity by helping deliver a modern, competitive airport in Sofia.”

Sofia Airport is Bulgaria’s main international gateway and a strategically important transport asset for the country. SOF Connect AD has operated Sofia Airport since 2021 under a long-term concession agreement. It is the largest concession in the country’s transport sector and the first major public-private partnership undertaken in more than two decades. SOF Connect AD is owned by the French infrastructure investor Meridiam, an asset manager specialising in the development, financing and management of infrastructure public-private partnerships and an existing EBRD client. The EBRD is a minority shareholder in the airport through its participation in Meridiam investment vehicles.

The EBRD has a long history of helping structure public-private partners across its economies. It supported the Bulgarian Government in the concession process for Sofia Airport in 2020, contributing to the debt package in 2021 and taking an indirect equity stake later on. Despite the impact of Covid 19 on aviation and passenger numbers, Sofia Airport has since then successfully upgraded its infrastructure, improved passenger services and set an ambitious goal to become fully carbon neutral by 2036, with more than €50 million dedicated to investments in decarbonisation measures.

A major institutional investor in Bulgaria, the Bank has invested more than €5 billion in 320 projects to date.