NIB co-funds expansion of Tallinn Airport
The Nordic Investment Bank (NIB) and Estonia’s AS Tallinna Lennujaam have agreed on a loan of EUR 24 million for the expansion of the airside traffic area and the development of other investments at Tallinn Airport.
The 13-year maturity loan will finance a major airside infrastructure improvement project, as well as other important projects, including the construction of a new parking facility and an aircraft painting hangar.
The airside traffic area project is aimed at improving the airport’s infrastructure capacity and minimise the airport’s impact on the environment. The new parking garage will provide a convenient facility for up to 1200 passenger cars. The aircraft painting hangar will support the development of business segments important to Tallinn Airport.
Tallinn Airport will be investing EUR 127 million in development projects between 2016 and 2020, of which EUR 70 million have been deemed eligible for funding from the EU Cohesion Fund. The EU Cohesion Fund shall contribute EUR 35 million of the EUR 70 million investment, the remainder of the funds will be obtained through equity finance and loans from NIB and EIB, among others.
“NIB has financed the development of several airports in the Nordic-Baltic region. Large infrastructure investments such as these require long-term funding. The expansion of the Tallinn Airport will help Estonia to continue developing its international ties and bring more business opportunities to the country”, says Gunnar Okk, Vice-President of NIB.
“The investment programme will help the airport to prepare for future growth opportunities. We are investing to provide a better service to our customers and to increase the passenger terminal’s capacity during peak hours, while ensuring the sustainability of operations at Tallinn Airport”, says Tallinn Airport’s CEO Piret Mürk-Dubout.
AS Tallinna Lennujaam is a state-owned company which operates the Lennart Meri Tallinn International Airport and six regional airports in Estonia. In 2015, Tallinn Airport served 2.2 million passengers and provided air routes to 32 destinations.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.