Athens International Airports (AIA) has offered €600 million (US$675 million) for the 20-year extension of the Athens international airport concession agreement. 

AIA's offer provides a total cost of €600 million (US$675 million), including the corresponding VAT. The net proceeds from the privatization program amount to €483.87 million (US$545 million). 

In late April, we informed that Hellenic Republic Asset Development Fundlogo (HRADF), Greece’s privatization agency, issued an invitation for expression of interest seeking for financial advisors to provide services for the sale of its 30 percent stake in Athens International Airport S.A. (AIA), the company in charge of the Eleftherios Venizelos airport concession in Athens.

HRADF  decided to evaluate a potential monetization of its stake in the airport and invites highly experienced financial advisors to submit a proposal to provide financial advisory services to for the transaction.

As we reported in February 2016, HRADF requested the opening of talks with AIA for a 20-year extension until 2046 of the Eleftherios Venizelos airport concession.

The total benefit to the State from the extension of the existing Concession Agreement is a multiple of the aforementioned price. In particular, it is estimated that the additional expected revenues from the payment of the annual remuneration, already provided for in the Concession Agreement, will amount to approximately €894 million for the total 20-year extension, whereas the estimated revenue from AIA's income tax is estimated to reach €1.47 billion. Finally it must be noted that approximately €835 million is expected by the government, due to the expansion and the future payment of additional dividends.

At the same time, due to the estimated upward trend in passenger traffic and the generally expected increase in tourism, it is anticipated that during the expansion period, AIA will be called upon to make a total investment of approximately €2.35 billion.