Norton Rose Fulbright has advised lenders Deutsche Bank, Unicredit Bank Austria, Zagrebacka Banka, the International Finance Corporation (IFC) and the European Investment Bank (EIB) on the financing of a €331 million project to expand and operate Zagreb Airport in Croatia.

The loan totalling €198 million is being provided to the ZAIC-A consortium, who are investing €133 million in equity provided by the consortium, which comprises Bouygues Batiment International, Aeroports de Paris Management, Marguerite Fund, IFC, TAV Airports and Viadukt. The consortium was awarded a 30 year design, build, finance, operation and maintenance concession in April 2012 and owns the airport’s operating company Medunarodna Zracna Luka Zagreb (MZLZ).

The financing will be used both to build a new passenger terminal, with construction expected to be completed by 2016, and for the continued maintenance of the airport. Once built the new terminal will increase passenger capacity to five million, up from the current two million.

Norton Rose Fulbright, led by banking partner Jon Ellis, advised the lenders on all aspects of the transaction. Partners Peter Hall in London and Martin Gdanski in Paris also advised, together with senior associates Chris Down and Elizaveta Bazarova and associates Michael Poole, Nazli Okusluk, Conor Boyle, Phil Hanson, Jessica Bethell-Jones and Angela Fletcher. Senior associate Daniela Schluckebier and associate Charlotte Brown advised on the hedging aspects of the transaction and of counsel Totis Kotsonis advised on the EU aspects of the transaction.

Jon Ellis, partner, Norton Rose Fulbright, commented:

“This was a complex transaction and one of a number of airport projects we have been advising on in recent months. The construction of the new terminal will significantly increase capacity at Zagreb Airport and we are pleased the financing has been brought to a successful close.”

The loan agreement was signed on November 30 2013.

Madirazza & Partners provided Croatia legal advice to the lenders. Pinsent Masons and Porobija & Porobija were legal advisers to the sponsors. Freshfields Brukhaus Deringer advised EIB on EIB specific aspects of the transaction and Clifford Chance advised IFC on their equity investment and intercreditor issues.