Government Approves Zagreb Airport Loan Refinancing

The MZLZ (Zagreb International Airport) company, which operates Zagreb Airport, is going to refinance its existing loan under more favourable conditions, so the Croatian government authorised Transport and Infrastructure Minister Oleg Butković to sign a contract with the concession-holder whereby Zagreb is greenlighting the refinancing.

The MZLZ, that is the concession-holder, cannot amend or in any way change the financing agreement or conclude a new financing agreement without the government’s prior approval, Minister Butković said.

The prerequisites have been created for the refinancing of the current loan and that will enable the further stabilisation of the project as well as pave the way for further investments in the enlargement of the existing passenger terminal.

Under the concession agreement, the state, which awarded this concession to the MZLZ, was entitled to 33% of any profit coming from the refinancing.

Thus, the state can count on 7 million euro and, according to Butković, an instalment of four million euro will be paid into the state budget upon the transfer of the borrowed money. The remaining three million euro, which will also be paid into the state budget, is to be used for upgrading the terminal and other airport facilities.

MZLZ Jsc is a company registered in Croatia with six shareholders: Aeroports de Paris Management – 20.77% Bouygues Batiment International – 20.77%, Fond Marguerite – 20.77%, IFC – 17.58%, TAV Airports – 15.0% and Viadukt d.d. – 5.11%.

The airport is owned by the Croatian government (55%), the City of Zagreb (35%), Zagreb County, and the Town of Velika Gorica, each with 5%.