ACSA, France sign loan agreement to improve O.R Tambo International

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The French Development Agency (AFD) and Airports Company South Africa Ltd (ACSA) have signed a long-term €85 million loan (approximately R1 billion).
The loan is repayable over fifteen years with a three year grace period, ACSA says in a statement.
The funds will be utilised to finance the extension and upgrading of ACSA`s flagship airport O.R. Tambo International, in particular the Central Terminal Building. 

Christophe Richard, the Regional Director of AFD based in Johannesburg said: “This financial support shows how international development institutions can accompany, even in critical global financial times, development processes that structure the economy.”

As part of ACSA`s strategy to diversify its sources of funding, it has approached a number of financial institutions, particularly those that focus on long-term infrastructure development.
AFD is the first international development finance institution to support ACSA in funding its capital investment programme.
Priscillah Mabelane, ACSA`s Executive Director: Finance said she as “pleased that AFD has partnered with us in providing long-term funding with an appropriate structure at the time that the credit market is constrained.”