BIA agrees £45m funding deal to finance upgrade
BIRMINGHAM International Airport has secured a £45m funding deal with Santander Corporate Banking and Royal Bank of Scotland to enable it to continue with its planned upgrade of facilities.
The new facilities replace expiring agreements and provide a solid platform for investment. Under the agreement, Santander will provide £25m and RBS £20m.
BIA began work on a £13m project to merge its two terminals in January and is also now well advanced with plans to extend its runway. These additional investments follow quickly after the completion in September 2009 of its new £46m International Pier.
Commenting on the new agreement, Mark Hattersley, BIA finance director, said: “Birmingham Airport is a major infrastructure asset for the UK and a key driving force of the Midlands economy. We have now entered an important phase in the history of the UK aviation sector – one in which Birmingham Airport is expected to play a much greater role.
“To enable us to meet the future needs of our passengers we continue to invest in our terminal buildings and are also progressing discussions with stakeholders on the extension of our runway. The new bank facilities that we are putting in place currently will assist us in fulfilling all of our medium term plans.”
He said the Birmingham office of Santander had played the lead role in developing the new funding agreement, while the airport was also grateful for the support shown by RBS.
Mark Eley, relationship director at Santander, said: “Birmingham Airport is a new client relationship for Santander and I am delighted that we have been able to earn the confidence of management and secure the lead bank role on such a high profile financing. We look forward to working closely with the Airport in the coming years.”
His fellow regional director Keith Webb said the bank remained committed to increasing its support of strong businesses.
“Whilst we are a new entrant to the UK corporate banking market, managing agreements such as this highlights both the experienced team we have built in the Midlands but also the extent of our ambitions,” he said.
Matt Heaton and Amy Satchwell, of Pinsent Masons advised the Banks, whilst Pat Johnstone, of Eversheds advised Birmingham International Airport.
Pictured from left, are: Mark Eley and Keith Webb, of Santander, Mark Hattersley, of Birmingham International Airport and Ashton Goymer-Brown and Kim Paterson, of RBS.
