Newcastle International Airport secures over £200m to accelerate green projects

Newcastle International Airport is set to progress a number of green projects after securing its first ever sustainable finance package, totalling £208m, from four major lenders.

The refinancing will see the Airport, which is the 11th busiest in the UK, commit to a number of sustainability targets to support its Net Zero Carbon 2035 plan.

The finance facilities also include a £15m green loan that will enable the airport to progress, for example, the next phases of its solar farm project and its continued transition to electric vehicles.

HSBC UK is a new lender to Newcastle International Airport’s banking club, joining existing lenders ING, NatWest and Development Bank of Japan (DBJ) to provide these financing arrangements.

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 (Financial), Allen & Overy (Legal), ING (Sustainability) and HSBC (Hedging).

Mark Hunt, chief financial officer of Newcastle International Airport, commented: “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, added: “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 at AMP Capital, noted: “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.”

Ben Foster, relationship director at HSBC UK, concluded: “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 master plan to reach its net zero goals.”

By Matthew Neville – Correspondent, Bdaily

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