The process of selecting lenders to finance the expansion of Sheremetyevo Terminal-2 was launched in autumn 2006, sparking immediate interest in the financial market. More than 20 Russian and international banks and financial organizations showed high interest in financing Russia's most famous Airport. The tender was completed in August 2007.
The winning parties Sberbank and HSH Nordbank, of Germany will finance the project, 'Expansion and Reconstruction of Terminal 2.', and act as organizers and underwriters of the syndicated loan facility. They will extend to Sheremetyevo a syndicated, 12-year loan facility for US $222 million dollars. According to the Sheremetyevo International Airport development plan, the loan proceeds will be used for construction of a new left wing for existing Terminal-2. Total project budget constitutes approximately US $300 million, its implementation will allow the airport to increase capacity of Terminal-2 and to expand the airport's commercial areas. It will also finance a connection of Terminal-2 and Terminal-3 with a new railway station from Sheremetyevo to Moscow.
The credit arrangement stipulates a 50-50 participation. The facility provides for standard terms and conditions common for such projects. Security package includes assets of the airport, including mortgage of existing Terminal-2 and Terminal-2 extension afterwards.
"Sheremetyevo is the only airport in Russia which has attracted direct financing from international banks for several years", - said Dmitriy Kalinin, Deputy General Director for Economics and Finance, Sheremetyevo International Airport. "Airport development plans, high yielding business and financial transparency make Sheremetyevo an attractive infrastructure investment opportunity as noticed by the tender process participants".
In the near and mid-term, Sheremetyevo-2 will consist of a new re-built Terminal-2, featuring two additional symmetric wings, car parking, train station and an international business centre. After reconstruction, existing Terminal-2 capacity will be increased to 3,000 passengers per hour, from 2,100 passengers per hour today. Each additional wing will be able to serve additional 1,600 passengers per hour. An open air, multi-level, 2,500-car parking lot will be located next to the Terminal-2. The train station and a nearby, 11-floor international business center, now under construction, will be connected by covered pedestrian walkways. By the end of this year, construction is to be completed for new aprons and jet parking places at Sheremetyevo-2.
Jones Lang LaSalle acted as the exclusive financial consultant for implementing the first phase of reconstruction and expansion of Terminal-2 of Sheremetyevo. The company assisted Sheremetyevo in attracting construction and investment financing, as well as providing consultations and advice to enhance the commercial potential of the airport's real estate properties.
Michael Lange, International Director and Chairman of Jones Lang LaSalle Russia & CIS: "Milestone projects, such as this one, are important to both our business and to the future of the market. I'm glad we are part of the process".
Mathis Shinnick, Global Head of Transportation for HSH Nordbank said: "we are delighted that Sheremetyevo International Airport has chosen HSH Nordbank together with Sberbank for this important financing project. As a leading transportation finance specialist for transportation infrastructure, logistics, aviation and railway we are experienced in financing complex infrastructure investments. We have built our knowledge in this field over time, so today HSH Nordbank is a committed partner in this field."
Source: Jones Lang LaSalle
