EBRD Backs €450M Financing for Sofia Airport Expansion

This article is based on an official press release from the European Bank for Reconstruction and Development (EBRD), supplemented by comprehensive industry research.

The European Bank for Reconstruction and Development (EBRD) has officially committed €50 million to a landmark €450 million strategic financing package for SOF Connect AD, the operator of Sofia Airports. According to the official press release, this transaction represents the first project finance bond for a public-private partnership (PPP) in Bulgaria to be issued on a regulated international market.

The capital injection is designed to support the comprehensive upgrade and modernization of Bulgaria’s primary international gateway. By subscribing to two senior notes within the broader financing package, the EBRD aims to strengthen the airport’s long-term financial resilience while funding critical infrastructure improvements, including the construction of a new terminal.

We note that this issuance has successfully attracted institutional investors who have not previously allocated capital to the country, effectively broadening Bulgaria’s investor base and setting a new benchmark for future infrastructure transactions in the region.

Financial Breakdown and Capital Market Impact

Structuring the €450 Million Package

The €450 million financing package is structured with a 22-year maturity and comprises refinancing bonds, CAPEX bonds, and a CAPEX loan facility. Based on detailed financial research, the package includes €180 million of 5.502% secured amortizing bonds that are scheduled to mature in June 2048. Amortization on these specific bonds is slated to begin at the end of 2031.

The EBRD’s €50 million subscription is split across two senior notes. The bonds are officially listed on Euronext Dublin, a move the EBRD highlights as a first for this type of debt instrument by a Bulgarian entity. The transaction involves a diversified syndicate of international investments and banking institutions, including the UniCredit Group.

Infrastructure Overhaul: Terminal 3 and Beyond

Expanding Capacity to 20 Million Passengers

The capital raised through the CAPEX bonds will directly fund the physical expansion of Vasil Levski Sofia Airport. According to project outlines, the centerpiece of this modernization is the construction of the new Terminal 3. Groundbreaking for Terminal 3 is scheduled for the autumn of 2026, with construction expected to span approximately five years. Full operational readiness is targeted for April 2031.

Once completed, the expansion will equip the airport with 34 gates and elevate its total annual handling capacity to 20 million passengers. Project plans indicate that upon the completion and integration of Terminal 3 with the existing Terminal 2, the outdated Terminal 1 will be permanently decommissioned. Concurrently, Terminal 2 will undergo a significant refurbishment to align with the new infrastructure standards.

Sustainability and the Path to Carbon Neutrality

Solar Integration and Decarbonization

SOF Connect has articulated a vision to transform Sofia Airport into Europe’s first 5-star regional airport, placing a heavy emphasis on environmental sustainability. The EBRD press release confirms that the airport has set an ambitious target to achieve full Carbon-Neutral by 2036, dedicating over €50 million specifically to decarbonization initiatives.

A key component of this green strategy is the construction of a modern 5-megawatt photovoltaic power plant on airport-owned land. Research indicates that construction of this solar park will commence in the first quarter of 2026, with commissioning expected by the end of the same year. This facility will generate electricity for the airport’s internal consumption and will subsequently be paired with a battery energy storage system.

The Concession and Long-Term Vision

Public-Private Partnership Dynamics

SOF Connect AD assumed management of Sofia Airport in April 2021 under a 35-year concession agreement with the Bulgarian government. This agreement stands as the largest concession in Bulgaria’s transport sector and the first major PPP undertaken in the country in over two decades. The operator is wholly owned by Meridiam, a French independent investment firm specializing in sustainable public infrastructure, with Munich Airport serving as the third-party operator partner.

The concession mandate requires a minimum investment of €624 million over the 35-year term. The EBRD has been a foundational partner throughout this process, having supported the Bulgarian government during the 2020 concession phase, provided a €50 million loan in 2020/2021, and later acquired an indirect equity stake consisting of €57.9 million in equity and €16.3 million in contingent equity.

“We are pleased to participate in this landmark transaction. It serves two of our priorities in Bulgaria: supporting more innovative capital market structures… while also improving regional connectivity,”

stated Elena Gordeeva, EBRD Director of Infrastructure Europe, in the official release.

Jesus Caballero, CEO of SOF Connect, echoed this sentiment in industry reports, noting that the financing illustrates the power of successful public-private Partnerships and reinforces the company’s commitment to developing the airport in the public interest.

AirPro News analysis

At AirPro News, we view this €450 million capital raise as a critical indicator of Bulgaria’s evolving macroeconomic trajectory. The successful issuance of a project finance bond for a PPP on a regulated market like Euronext Dublin serves as a strong signal to international markets, particularly following Bulgaria’s ongoing integration into the eurozone. By mobilizing new institutional capital, this transaction not only sets a benchmark for future infrastructure financing in the Balkans but also solidifies Sofia Airport’s strategic position as a highly competitive gateway connecting Europe, the Middle East, and the Caucasus. The strict adherence to a 2036 carbon neutrality timeline further demonstrates that access to top-tier European capital is increasingly contingent upon rigorous environmental commitments.

Frequently Asked Questions

• What is the total value of the Sofia Airport financing package? The total financing package is valued at €450 million, which includes refinancing bonds, CAPEX bonds, and a CAPEX loan facility.
• How much is the EBRD investing? The European Bank for Reconstruction and Development is investing €50 million across two senior notes.
• When will the new Terminal 3 be completed? Construction is scheduled to begin in autumn 2026, with full operational readiness targeted for April 2031.
• What are the airport’s sustainability goals? Sofia Airport aims to become fully carbon neutral by 2036, supported by a new 5-megawatt solar power plant and over €50 million in dedicated decarbonization investments.

Sources

• EBRD Press Release