Schiphol to borrow €400 million from European Investment Bank for investment plans

Schiphol is going to borrow hundreds of millions of euros from the European Investment Bank (EIB) to finance the airport’s investment plans. Royal Schiphol Group and the EIB have closed a loan agreement of 175 million euros, the parties announced on Tuesday. That is the first part of the deal worth 400 million euros.

The first loan will mostly be used for the construction of a new luggage basement. The replacement and renovation of the existing system are expected to lead to improved working conditions for baggage handlers.

Schiphol is going to invest six billion euros to improve infrastructure, working conditions, and services, the airport announced last summer. The airport said it is the biggest investment ever made into the airport. This was reportedly necessary because overall passenger satisfaction was not at the levels required.

“The largest investment challenge in the airport's history requires robust finances and healthy cash flows. Additional financial resources are necessary to realize investments in infrastructure,” said Schiphol’s financial CEO, Robert Carsouw.

The EIB is the European Union’s financial institution for long-lasting credit. It supports businesses all over Europe. “We have a lengthy relationship with Schiphol, and we are happy to support them with these improvements in efficiency, which will benefit passengers and staff,” vice chairman Robert de Groot added.

This is not the first time that Schiphol has been supported by the EIB. The airport had been financed by the European financial institution in the past for other infrastructure projects.