Finance Monthly. Beyond the Deal Beyond the Deal 26 27 Finance Monthly. Athens International Airport’s €806 million secured bond financing marks a major milestone in the long-term expansion of Greece’s primary aviation hub, supporting a €1.35 billion infrastructure programme designed to meet rising passenger demand. Here, we speak with Ioannis Kaptanis, Partner at Koutalidis, about the structuring of the transaction, the legal and financial complexities of integrating the new bond into AIA’s existing facilities, and what the financing means for the airport’s next phase of growth. How was the €806M secured bond integrated into AIA’s existing multi tranche financing structure? We advised Alpha Bank on the €806 million secured bond loan and, in parallel, advised the syndicate of four Greek systemic banks on amendments and restatements of four existing bond loans issued by Athens International Airport. These amendments were necessary in light of the new financing. They involved adjustments across the entire set of finance and security documents to ensure alignment between the existing loans and the new bond loan, while preserving their autonomy and individual characteristics. The work was extensive and carried out under tight deadlines. The alignment process required careful structuring to maintain consistency across multiple instruments without compromising the integrity of each facility. ATHENS INTERNATIONAL AIRPORT SECURES €806M BOND LOAN FOR €1.35BN EXPANSION What were the principal legal and structural complexities in synchronising the new bond with AIA’s legacy facilities? Although the new bond loan followed the precedent framework of previous AIA financings, negotiations took place regarding both business and structural issues. One particular complexity was the classification of the expansion bond loan as “Designated Debt” for the purposes of the Airport Development Agreement. This required additional contractual documentation and coordination between stakeholders. At the same time, a parallel workstream focused on ensuring that amendments to existing bond loans were properly synchronised with the terms of the new financing. This dual-track process demanded close collaboration between the company, Alpha Bank, the banking syndicate, and both local and international counsel. What additional structuring considerations arose from the ‘Designated Debt’ classification under the Airport Development Agreement? Publicly announced plans indicate that the first phase of expansion will begin in early 2025 and be completed by 2028, increasing annual capacity to 33 million passengers. The broader plan targets capacity of 50 million passengers by 2045. The project includes terminal expansion, additional aircraft slots, runway enhancements, VIP facilities, parking infrastructure, and surrounding road network upgrades. The bond loan structure allows for multiple drawdowns aligned with the progress of construction works, ensuring that financing is deployed efficiently throughout the project lifecycle. The final maturity date in 2042 aligns with the long-term infrastructure horizon of the expansion. How were lender protections and drawdown mechanics structured to support a long-dated infrastructure financing through 2042? The expansion of Greece’s primary international gateway is expected to have a direct impact on tourism and transport sectors. Increased capacity will allow Athens to accommodate growing passenger volumes, particularly during peak tourist seasons. Enhanced facilities and expanded runway capacity may also attract additional airlines and new routes, strengthening Greece’s connectivity with global markets. Sector: Infrastructure / Aviation / Project Finance Transaction Type: Secured Bond Loan Financing Deal Size: €806 million Lender: Alpha Bank Deal Status: Completed Completion Date: October 2025 Final Maturity: 2042 STRATEGIC FINANCING INSIGHT WITH IOANNIS KAPTANIS
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