The winning bidder selected for the privatisation of seven airports in Hokkaido has secured what could be the largest domestic project financing facility in recent years, according to a document seen by Inframation.
The Hokkaido Airports is due to sign a JPY 365.17bn (USD 3.33bn) debt package tomorrow (19 December), which will bring to financial close a deal that has been in the works since 2014.
The document details that the loan will comprise six tranches and that it is being co-lead arranged by Mizuho and SMBC. In addition to these institutions, the four-strong lending club includes participation from two Hokkaido-headquartered regional Japanese banks, The North Pacific Bank and The Hokkaido Bank. Local media reports suggest that the debt may be syndicated further in due course to a larger number of participants.
The tenor of the primary lending facility varies by tranche, but the majority of the debt will mature in just under 30 years. Mizuho is advising the consortium on the process, with Baker McKenzie offering legal advice to the SPV and Nishimura Asahi to the lenders.
The debt package is in line with the JPY 292bn (USD 2.68bn) concession fee the consortium is required to pay the Japanese government in exchange for the 30-year concession, as was announced in a document published by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) on 31 October.