LLC Air Gates of Northern Capital consortium headed by VTB Bank involving operator of Frankfurt airport Fraport AG will obtain a EUR 700 million loan to reconstruct Pulkovo airport in St. Petersburg. The financial consultation to the consortium is provided by VTB Capital, actively working on the design of the optimal financial structure of the project.
Loan placement has been successful, primarily with the international development banks: EBRD, International Finance Corporation, Nordic Investment Bank, Eurasian Development Bank, Black Sea Trade and Development Bank and Vnesheconombank. Most of the development banks have received approvals from their Boards of Directors. The loan is granted for 15 years.
Besides, Western commercial banks will also participate in the airport reconstruction project and provide a twelve-year EUR 200 million loan to the consortium. At present, the total amount of loan applications from the commercial banks has exceeded the initially planned loan amount twofold.
Reconstruction of Pulkovo airport is the first Russian large infrastructure project under private-public partnership implemented without state grants and guarantees. The project was initiated by the Government of St. Petersburg. The open tender for the project was announced in May 2008. The winning LLC Air Gates of Northern Capital consortium involves VTB Bank with a 57.5% share, Fraport AG (the leading international airport operator and owner of Frankfurt airport with a 35.5% share) and Horizon Air Investments (a subsidiary of the Greek construction and investment conglomerate Copelouzos Group) with a 7% share.