Empowering Senegal's aviation future: MCB’s financing of Blaise Diagne International Airport

Background

Aéroport International Blaise Diagne SA (AIBD), Senegal’s state-owned company responsible for the Blaise Diagne International Airport and the development of the country’s air transport infrastructure, has secured a EUR 300 million senior secured syndicated facility. This funding is central to Senegal’s Air Hub Strategic Plan, which aims to position Dakar as a premier air transport hub in West Africa by 2035. Located 47 km from Dakar, Blaise Diagne International Airport handles over 90% of the country's air traffic, making it a critical gateway for both domestic and international flights.

MCB’s Strategic Role

The Mauritius Commercial Bank (MCB) played a significant role in this financing as one of the main lenders for the EUR 300 million senior secured facility, specifically contributing to the EUR tranche. MCB collaborated closely with Standard Chartered Bank, which took on the role of Co-Global Coordinator, Sole Structuring Bank, and mandated lead arranger and bookrunner for the EUR 100 million tranche. In addition to the EUR tranche, AIBD also secured XOF 131 billion (equivalent to EUR 200 million) from a consortium of local banks. These combined efforts underscore the collaborative approach taken to fund the continued development of Blaise Diagne International Airport and reflect MCB's commitment to backing large-scale infrastructure projects across Africa.

Youri Harel, Team Leader – Specialised Finance at MCB, emphasized the importance of this deal, stating, “This transaction funds the expansion of AIBD and fuels Senegal’s ambition to become a leading air traffic hub in West Africa. It also underscores MCB’s dedication to financing projects that unlock Africa’s vast economic potential.”

Results

The funds raised will be utilized for the continued development of Blaise Diagne International Airport, including a 40% increase in annual passenger capacity, bringing it to over 5 million by 2035. Additionally, the construction of a cargo terminal and the renovation of regional airports are key elements of this expansion. These developments are poised to meet the growing demands of domestic and international air traffic, thereby driving economic growth and creating employment opportunities in Senegal. NK Naginlal Modi from MCB's Power & Infrastructure financing team added, “MCB’s involvement in this transaction is a testament to our commitment to supporting critical infrastructure projects that will boost economic development in our key markets.”

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