Concessionaire responsible for Galeão Airport obtains loan from BNDES
At the end of August, 2014, the National Economic and Social Development Bank (“BNDES”) approved a loan of R$1.1 billion to the concessionaire “Aeroporto Rio de Janeiro S.A.”, the company responsible for the management of the Galeão Airport in Rio de Janeiro for the next 25 years.
The concessionaire is a Special Purpose Entity (‘SPE’) controlled by Odebrecht Transport Aeroportos and the Singapore-based Changi Airport Group, which jointly hold a 51% share in the consortium, whilst the Brazilian Airport Infrastructure Company – Infraero holds the other 49%.
The loan represents 70% of the investment that is to be made in the airport over the first 18 months of the concession, whilst one of the conditions imposed by the bank is that the investment must be directed towards the hiring of Brazilian work force and the purchase of Brazilian products. The concessionaire estimates that 600 direct jobs and around 1,000 indirect jobs will be created as a result of the improvements at the airport. During the implementation work, it is forecast that more than 2,500 employees will be taken on.
The financing is to be performed by means of the so-called ‘bridge loan facility’, that is based upon a high interest rate and a shorter repayment period. It aims to allow the work on the improvements to start whilst BNDES is approving a longer-term loan, with better conditions for the investors.
The financial resources are to be invested in the expansion, maintenance and modernization of the passenger terminals, parking areas and boarding bridges.