Investment Plan for Europe: EIB Supports Further Expansion of Budapest Liszt Ferenc International Airport

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  EUR 200 loan agreement between EIB and Budapest Airport allows further expansion of Hungary`s main airport;
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  Activity is backed by the European Fund for Strategic Investments (EFSI), the heart of the Investment plan for Europe (or Juncker plan);
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  Passengers to continue experiencing world-class service at the Airport

Continued expansion and upgrades of Hungary`s main international airport are at the core of the EUR 200 million loan agreement signed today between the European Investment Bank and the Budapest Airport, the company operating Liszt Ferenc International Airport.

The EIB loan, backed by the European Fund for Strategic Investments (EFSI), the heart of the Investment plan for Europe (or Juncker plan), will allow Budapest Airport to continue to invest in major infrastructural upgrades, in particular, a significant expansion of its terminal facilities and related infrastructure.

Investments will increase the capacity of the airport to accommodate expected future demand growth. The new terminal capacity will be a state-of the art facility and will ensure world-class travelling experience for passengers.

In addition to the above investments, the Budapest Airport is undertaking many other significant projects, including a new cargo facility, a multi storey car park and a range of projects aimed at ensuring a continued high service level.

These developments will ensure that the Liszt Ferenc International Airport continues to be a world class airport serving a world class destination while also maintaining the highest airport safety and security standards.

Commissioner for Education, Culture, Youth and Sport, Tibor Navracsics, said: "This is great news for Hungary, the Hungarian people and the tourists who come to visit the country. The funds freed up with this new loan backed by the Investment Plan for Europe will help boost development and economic growth in the region of Budapest and the rest of the country, while contributing to make Hungary an even more attractive destination."

Vice President of the EIB, Vazil Hudak said: „The EIB suports the expansion of the Budapest Airport as one of the fastest growing aiports in Europe. Together with our partners, we will sustain and create jobs in and around the airport, support economic growth of Budapest and Hungary, and help improve passenger experience. We are proud to contribute to the success of Budapest Airport.“

„The European Investment Bank again supports the realization of another important and forward-pointing development“ - said Gábor Gion, State Secretary for financing affairs of the Ministry of Finance. He underlined: „the EIB has brought and continue to bring resources to Hungary with favorable conditions for programs improving competitiveness, contributing to realization of investments in both private and public sector. We are particularly pleased that the airport development announced today will be supported by the European Strategic Investment Fund. Thus the bank may play a significant role in reducing the risk of the investor.“

CEO of Budapest Airport, Jost Lammers said: „We are honored and proud to announce the involvement of EIB as following nearly 1 year of hard work we undertake an ambitious plan to expand and further develop Budapest Airport. With plans to invest over 700 million EUR during the next five years, Budapest Airport will implement a series of important projects that will provide a continued high quality service level for passengers while ensuring a safe and secure environment for all travelers and thus improve the aviation connectivity of Hungary.”

In 2017 Budapest International Airport Ferenc Liszt served more than 13.1 million passengers, an increase of 14,5 percent from 2016; this growth trend has continued in 2018 too.

About the European Investment Bank (EIB)

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals both in Europe and beyond. The European Investment Bank is active in around 160 countries

Investment Plan for Europe

The Investment Plan for Europe, known as the Juncker Plan, is one of the European Commission’s top priorities. It focuses on boosting investment to generate jobs and growth by making smarter use of financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.

The European Fund for Strategic Investments (EFSI) is the main pillar of the Juncker Plan and provides first loss guarantees, enabling the EIB to invest in more projects that often come with greater risks. EFSI has already yielded tangible results. The projects and agreements approved for financing under EFSI are expected to mobilise EUR 360 billion in investment, including EUR 2.2 billion in Hungary, and support 850 000 SMEs in the 28 Member States.

About Budapest Airport

Budapest Airport is the best airport in Eastern Europe, as recognized by Skytrax in 5 consecutive years from 2014 to 2018, based on passenger ratings. Budapest Airport Ltd., the operator of Budapest Ferenc Liszt International Airport, is owned by a consortium of Canadian (Caisse de dépôt et placement du Québec, 21.228 %) and Singaporean (Malton Investment Pte Ltd., 23.334 %) investors led by AviAlliance GmbH (55.438 %). The terminals of the airport are home to 44 airlines which transported 13.1 million passengers to 125 destinations in 45 countries in 2017 (14.5 % growth rate in 2017 vs. 2016). Budapest Airport in 2017 handled 127.145 tons of cargo (a 13.4 % growth rate vs. 2016).