VINCI Airports Secures €120M Sustainability-Linked Financing for Cape Verde Airports

Orrick has advised long-standing client, VINCI Airports, on the €120 million cross-border sustainability-linked non-recourse financing for the further development and upgrade of the seven airports of Cape Verde. The financing expands on the first phase of financing, completed in 2023, on which Orrick also advised.

VINCI Airports secured a 40-year concession for the financing, operation, maintenance, extension and modernisation of the Cape Verde airports in August 2022, on which Orrick also advised VINCI Airports. Pursuant to the terms of the concession, VINCI Airports will fund, operate, maintain, extend and modernise the Airports alongside its Portuguese subsidiary, ANA-Aeroportos de Portugal.

This new financing is a sustainability-linked financing provided by three DFIs: International Finance Corporation (IFC); Deutsche Investitions- und Entwicklungsgesellschaft MBH (DEG), and The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company, managed by Ninety One.

IFC and DEG also participated in the 2023 financing, while EAAIF's participation marks a milestone in expanding the lending syndicate (and the first time that EAAIF has financed airports through a sustainability linked facility). Société De Promotion Et De Participation Pour La Coopération Économique S.A. (PROPARCO) participated in the 2023 financing.

THE COMPANY

VINCI Airports is the world's leading private airport operator with more than 70 airports operating in 14 countries and eight capitals.

THE IMPACT

Securing this expansion financing is a major milestone for Cape Verde as it will support the country's booming tourism industry. It is a testament to the success of its airports since VINCI was awarded the concession, with a significant increase in passenger numbers supporting the need for the expansion.

As part of the financing, VINCI Airports will also implement an environmental action plan, which includes the development of renewable energy projects at the islands' airports.

The landmark transaction continues to solidify VINCI Airports' international network, which now spans 70 airports in 14 countries making VINCI the world's number one private operator in the sector.

THE TEAM

The cross-border Orrick team is led by Adam Smith and includes Oliver Sikora, James Labovitch. French law assistance was provided by Paul Loisel, Ahmed Boulahcen and Othmane Belkasseh. Orrick partner Yves Lepage, head of our Africa practice, comments: "We are proud to continue to advise our longstanding client, VINCI Airports, on this landmark transaction using our cross-border team, and we are delighted to see the continued growth since we advised VINCI Airports on its entry into Cape Verde in 2023."