©Tim Smit/EIB

Isavia has secured a ISK 12.5 billion (EUR 100 million) loan from the European Investment Bank (EIB). The funds will be used to renovate existing infrastructure in addition to making capacity investments at Keflavik International Airport, in order to respond to substantial passenger growth. The agreement signed today closes Isavia’s funding needs for 2018.

Björn Óli Hauksson, Managing Director: “It is a pleasure to see the EIB among Isavia‘s group of lenders and there are high expectations for a continued successful partnership with the Bank. The upcoming development at Keflavík International Airport is substantial, and the support and understanding from its lenders is therefore important for Isavia.”

Specifically, the project will provide additional terminal, airside and landside capacity and is set to improve the level of service offered by the existing facilities, which operate above capacity during peak periods. The financing will also be used for the extension of the south terminal, the upgrade of the Baggage Handling System (BHS), the rehabilitation of the runways and the construction of additional taxiways and Rapid Exit Taxiways (RETs), among other various associated investments.

EIB Vice-President Andrew McDowell, responsible for operations in EFTA countries, added: “Keflavík is the gateway to Iceland and is projected to receive nearly 10,5 million travellers in 2018, continuing a growing trend. Therefore, additional capacity will soon be needed to better serve the many people who transit here each year. The EIB has been active in Iceland since 1995 and with this signature the Bank reaches the one billion euro mark in terms of the volume of loans it has extended to Icelandic projects, we are certainly proud of that.”