The European Bank for Reconstruction and Development has invested €50 million in the first bond issuance by SOF Connect AD, operator of Sofia Airport, as part of a €450 million financing package. The landmark transaction, listed on Euronext Dublin, is the first such debt issuance by a Bulgarian entity and includes refinancing bonds, CAPEX bonds, and a CAPEX loan facility.
The European Bank for Reconstruction and Development is supporting Bulgaria's capital market development and the financial resilience of Sofia Airport by investing in the first bond issuance by SOF Connect AD, the operator of the airport, according to an official announcement. The Bank has subscribed for a total of €50 million across two senior notes issued by SOF Connect as part of a €450 million financing package comprising refinancing bonds, CAPEX bonds, and a CAPEX loan facility. The bonds are listed on Euronext Dublin, marking the first issuance of this type of debt instrument by a Bulgarian entity.
EBRD is a multilateral development bank focused on private sector development in Europe, Africa, and Asia. SOF Connect AD has operated Sofia Airport since 2021 under a long-term concession agreement, the largest concession in the country's transport sector and the first major public-private partnership undertaken in more than two decades. SOF Connect is owned by French infrastructure investor Meridiam, an existing EBRD client, with EBRD as a minority shareholder through participation in Meridiam investment vehicles.
This development matters for Bulgaria's capital markets, where the landmark issuance has attracted institutional investors that have not previously invested in the country, broadening Bulgaria's investor base and setting a benchmark for future transactions. The Bank's investment in refinancing bonds will strengthen the airport's long-term financial structure, while commitment to CAPEX bonds will finance facility upgrades. Sofia Airport has set an ambitious goal to become fully carbon neutral by 2036, with more than €50 million dedicated to investments in decarbonisation measures.
For the infrastructure and aviation sectors, the transaction supports regional connectivity by helping deliver a modern, competitive airport. The EBRD has invested more than €5 billion in 320 projects in Bulgaria to date, with this transaction supporting two priorities: innovative capital market structures and improving regional connectivity. Despite the impact of Covid-19, Sofia Airport has successfully upgraded its infrastructure and improved passenger services.
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