Image from RC Noticias
Santo Domingo.- Aeropuertos Dominicanos Siglo XXI (AERODOM), a subsidiary of VINCI Airports, successfully closed a $940 million financing deal on July 9, 2024. The funding comprises a $500 million global bond issue and a $440 million credit agreement.
The funds will be used to fulfill the obligations of the Renewed and Reformed Concession Contract enacted in December 2023, extending AERODOM’s administration and operation of six state airports until 2060. Under this contract, AERODOM agreed to make an initial concession payment of $775 million to the Dominican State and committed to airport improvements, including constructing a new terminal at Las Américas International Airport, José Francisco Peña Gómez in Santo Domingo.
The credit facilities were arranged by Banco Popular Dominicano, S.A. – Banco Múltiple, Banco Latinoamericano de Comercio Exterior, S.A., New York Agency, Citigroup Global Markets Inc., JPMorgan Chase Bank, N.A., Popular Bank LTD. INC., and The Bank of Nova Scotia. JPMorgan, Citigroup, and Scotiabank coordinated the bond placement.
“We are very pleased to have made the second payment of the concession fee to the Dominican State to complete the commitment of $775 million, and at the same time, to be in the process of executing the agreed improvements for Las Américas International Airport, including the upcoming construction of the new terminal. Without a doubt, VINCI Airports, through its subsidiary AERODOM, is consolidating its position as one of the largest investors in the Dominican Republic,” said Mónika Infante Henríquez, general director of AERODOM.
The bond issuance saw significant demand, generating one of the largest oversubscriptions for a Latin American corporate issuer, reaching a maximum of approximately $3 billion (6.0x) and receiving offers exceeding $1,300 million before the official announcement. These bonds are among the lowest-rated high-yield corporate bonds placed since January 2021.
This nearly $1 billion deal ranks among the largest corporate financings in the history of the Dominican Republic, highlighting a favorable investment climate and investor confidence in AERODOM and VINCI Airports. This confidence is bolstered by the stability and strong performance of the tourism sector and the Dominican economy.
VINCI Airports, the world’s leading private airport operator, manages over 70 airports in 13 countries. It has been present in the Dominican Republic since 2016, when it acquired 100% of AERODOM’s shares.