Newcastle International Airport will forge ahead with a raft of green projects after securing a £208m finance package.
The airport – the 11th busiest in the 海角视频 – has sealed the refinance package with four major lenders as part of its commitment to a number of sustainability targets, all in support of its Net Zero Carbon 2035 plan. The finance facilities also include a £15m green loan that will enable the airport to progress the next phases of its solar farm project, as well as its continued transition to electric vehicles.
Its huge solar farm will see a 16MW facility, comprising around 40,000 solar panels on 22 acres of land next to its runway – a move it is hoped will halt 150,000 tonnes of carbon dioxide being pumped into the atmosphere over its 37-year operation. The finance deal sees HSBC 海角视频 become a new lender to Newcastle International Airport’s banking club, alongside existing lenders ING, NatWest and Development Bank of Japan (DBJ). The airport said the extension has been agreed well in advance of the expiry of previous arrangements, and has been carried out with the airport’s advisors, NatWest, Allen & Overy, ING and HSBC.
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The deal comes two months after the airport released accounts that showed passenger numbers in 2021 were just above 1m, well below the 5m seen in pre-pandemic times. However, the slow recovery reflected in the accounts has seen been replaced by strong activity in 2022, as international travel rebounded as travel restrictions and testing requirements were gradually relaxed.
Mark Hunt, chief financial officer of Newcastle International Airport, welcomed the new finance deal. He said: “After the challenges of the pandemic, the completion of this refinancing demonstrates the confidence of our banks in Newcastle International Airport. These facilities will allow us to continue to invest in customer facilities and infrastructure, attract more new airlines and routes, and really push forward on sustainability and Net Zero.”
Councillor Tracey Dixon, Leader of South Tyneside Council and Lead for the LA7, said: ““The refinancing marks another significant step in the Airport’s successful journey following the Covid pandemic. As the Chair of the Newcastle Airport Local Authority Holdco, I am delighted that the financing terms include support to increase the environmental sustainability of the Airport’s operations.”
Graeme Ferguson, head of airports, Europe at AMP Capital, said: “This successful refinancing demonstrates again the resilience of the aviation sector, the quality of the asset itself and the capability of its management team. We are particularly pleased that Newcastle’s Net Zero Carbon pathway can be accelerated by the innovative green loan facility.”
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Ben Foster, relationship director at HSBC 海角视频, said: “We’re pleased to play a significant part in helping Newcastle International Airport work towards its green ambitions as we join its banking club, providing loans and hedging facilities. With all airports and their airline customers working through the challenges of reducing carbon emissions, we’re pleased to provide sustainable financing to support the Airport’s transition, and help to deliver its 2035 masterplan to reach its net zero goals.”
Hemal Ruparelia, relationship manager for Newcastle International Airport at ING Bank, said: “In our role as a lead lender and the sustainability advisor, we are pleased to support Newcastle International Airport in their journey towards Net Zero. In particular by structuring the green loan and working alongside the Airport to develop the sustainability targets for this refinancing.”
John Dryden, director, large corporates at NatWest, added: “Having supported Newcastle International Airport with finance solutions for some time, NatWest is delighted to have been appointed co-ordinator for this innovative refinancing package. The deal highlights the importance of finance to enable and expedite the transition to greener business solutions and we look forward to continuing to support the airport on its sustainability journey.”
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