SOF Connect - Short Company profile

Sofia Airport concessionaire SOF Connect won the tender for the management of the capital's airport with one main commitment - to build a new Terminal 3. Its construction should begin within a few months and should be operational by April 19, 2031. The goal is to increase the annual passenger service capacity from 7 to 20 million. SOF Connect entered the airport operationally five years ago. The investment for the entire concession period of 35 years should reach 600 million euros. Now SOF Connect has also reached the financial part of the task, organizing financing for about 450 million euros. The resource was raised through a combination of bank loans and a bond issue with a 22-year maturity. The bonds for 180 million euros are listed on Euronext Dublin, and the financing will be used in three tranches until 2031. The first one has now been taken - the bond, which covers old liabilities. Then, apparently, the bank loans will also be used, which will be mainly for the new terminal and the renovation of the current Terminal 2. 11 international financial groups are participating in the financing, including the European Bank for Reconstruction and Development - EBRD, Allianz Group, Alpha Bank, M&G Investment, National Bank of Greece, Unicredit Bulbank, etc. The European Bank for Reconstruction and Development announced that they have subscribed a total of 50 million euros in two issues of senior bonds issued by SOF Connect, as part of the financial package of 450 million euros. "SOF Connect" is owned by the French infrastructure investor Meridiam, a management company specializing in the development, financing and management of infrastructure public-private partnerships and an existing client of the EBRD. The bank is also a minority shareholder in the airport through its participation in Meridiam investment structures. In April, a slight change in the ownership structure of SOF Connect took place and the company is now solely owned by Meridiam Eastern Europe Investments SAS, while previously two other companies of the group - Meridiam Infrastructure Europe III S.L.P and Meridiam Investments SAS - each held 0.01%. London-based M&G also invested EUR 70 million in SOF Connect. M&G is one of the largest investors in airport debt with around GBP 1.1 billion in debt held in airport operators worldwide. The funds will be used for refinancing and investments. The secured bonds are worth 180 million euros with a yield of 5.502% and mature in 2048. The bonds bear interest from May 12, 2026. The company's financial liabilities at the end of 2025 show bank loans of 340 million leva (174 million euros). Among the creditors are EBRD, Black Sea Trade and Development Bank, Kommunalkredit Austria AG, Societe Generale, Unicredit Bulbank, DSK Bank. "SOF connect" fulfilled its commitments under the first five-year investment plan (2021 - 2025) with investments in the amount of over 91.5 million euros. The investments included the construction of new open-air parking lots, major renovation of the Terminal 2 multi-storey car park, airport rehabilitation activities, modernization of the fuel fleet, ongoing works related to the replacement of the Terminal 2 baggage handling system, new retail outlets and upgrading of information and communication systems and infrastructure. In the next five years, under the second five-year plan, the minimum commitment is for 183.1 million euros of investments for the period 2026 - 2030. Terminal 3 was announced to cost 230 million euros, with an additional 25 million euros planned for equipment. The technical design for Terminal 3 has already been prepared, and the construction permit is expected to be issued in the summer of 2026.