Leading global law firm Herbert Smith Freehills Kramer has advised a syndicate of local and regional commercial banks, European institutional investors and development financial institutions on the €450 million refinancing and expansion financing of Vasil Levski Sofia Airport in Bulgaria, one of the most significant transport infrastructure assets in Bulgaria.
Bringing together long‑term loans from local banks with regulated‑market listed project bonds on Euronext Dublin, the transaction represents Bulgaria’s first project bond financing and a rare example of fully integrated loan and bond structures in the CEE infrastructure market. The financing package is underpinned by a single coherent platform of intercreditor, security and finance documents tailored to accommodate both bank and capital markets investors.
The proceeds will be used by SOF Connect EAD, the airport’s concessionaire, to refinance existing indebtedness and to fund its capital investment programme, including the construction of a new Terminal 3 and the upgrade of existing airport infrastructure over the coming years. The financing features a 22‑year maturity profile and a tailored package of loan and bond documentation designed to accommodate phased capex and long‑term operational needs.
The Herbert Smith Freehills Kramer team was led by partner Michaël Armandou, supported by of counsel Artem Soloshchenkov. The wider team included partners Amy Geddes, Matthew Job and Hannes Jacobi, of counsel Nicholas Rutter, senior associates Da Kyung (DK) Kwon and Tim Abendschein, and associates Morgane Bonnardot, Alexandre Rakotovao, Enitoluwafe Owolabi and Miriam Stamm, from across the firm’s Paris, London and Frankfurt offices.
Partner Michaël Armandou commented: “We are pleased to have advised on the refinancing of Vasil Levski Sofia Airport, a landmark transaction that sets a new benchmark for public‑private partnerships and highlights the growing depth of both the Bulgarian banking market and international institutional capital for high‑quality infrastructure. Structuring a first‑of‑its‑kind project bond alongside bank debt required close coordination between sponsors, lenders and institutional investors, and underscores our deep sector knowledge and the strength of our cross‑border capabilities in delivering complex infrastructure financings.”
Partner Amy Geddes commented: “This transaction demonstrates how sophisticated capital markets tools can be combined with traditional bank lending to support strategic infrastructure in emerging project bond jurisdictions. We worked closely with all parties to design bond terms that satisfy international capital markets expectations while remaining fully compatible with the project finance framework and concession regime. We see this as an important reference point for future infrastructure project bonds in the region.”
