March 28, 2019, 14:24 / Business / News

Domodedovo Airport agreed with Eurobond holders to increase debt

DME Airport has agreed with holders of two Eurobond issues maturing in 2021 and 2023. increase the maximum net debt to EBITDA, according to a statement on the website of the Irish Stock Exchange.

The decision was made at a meeting with holders of the relevant bonds on March 27.

In early March, DME Airport asked investors for permission to increase its net debt limit from 3 to 4 EBITDA. The company explained that the net debt/EBITDA ratio had seriously deteriorated due to the devaluation of the ruble in 2018. In connection with this, at the end of the year the group’s net debt exceeded 3 EBITDA.

Eurobond covenants stipulate that the maximum amount of net debt should not exceed 3 EBITDA. Senior credit analyst at ING Bank Egor Fedorov explained that if covenants are violated, the airport cannot attract further debt financing.

Investors considered the proposed remuneration adequate and the level of risk acceptable, comments Alexander Bulgakov, executive director for debt capital markets at Raiffeisenbank (the bank was the agent of the offer). The investors' decision looks logical, he believes: Domodedovo consistently generates profits and invests heavily in development, its credit quality is confirmed by high international credit ratings - Moody's and Fitch Ratings. In the future, the company is considering the possibility of issuing ruble bonds to balance the currency structure of long-term debt, Bulgakov added.

Domodedovo is the second largest airport in Russia. Last year it welcomed 29.4 million people. This is the only Moscow airport that has been consistently profitable over the past 10 years.