ATHENS, March 27 Fraport Greece, a joint venture
between German airport operator Fraport and Greece's
Copelouzos Group, has secured a loan of about 1 billion euros
($1.1 billion) to help fund a deal to operate 14 airports, it
said on Monday.
Fraport signed an agreement in 2015 to operate airports on
Greek tourist islands, including Corfu and Santorini, for 40
years for an upfront fee of 1.23 billion euros. The agreement
was part of the country's third international bailout.
Fraport, which has established an airport management company
in Athens, has said it will spend at least 400 million euros on
construction to upgrade the airports in the first four years,
while total investment will top 1.4 billion euros.
Some 688 million euros of the loan, provided by a consortium
of lenders including the European Union, will help Fraport pay
the upfront fee while 280.4 million euros will be spent
upgrading the airports, Fraport Greece said.
"Modern infrastructure will play a crucial role in
supporting Greece's economic recovery," EU Economic Affairs
Commissioner Pierre Moscovici said in a statement.
"This is a prime example of the type of investments the
European Commission is committed to support, as they bring
growth and development," he said.
The consortium of lenders includes Alpha Bank, the
Black Sea Trade and Development Bank, the European Investment
Bank, the European Bank for Reconstruction and Development and
the International Finance Corporation.
"The successful financing of this complex project is a clear
signal regarding the prospects of the Greek economy," Fraport
Greece Chief Executive Alexander Zinell said.
Fraport is expected to take over the airports later this
($1 = 0.9179 euros)
(Reporting by Angeliki Koutantou; editing by David Clarke)