Newcastle International Airport (NIAL) is the largest airport in the Northeast of England providing an important gateway for the region, with the nearest major airport located around 100 miles away.

The airport serves approximately 5.4 million passengers annually, offering connections to more than 80 direct destinations and over 300 one-stop connections through six hub airports and 16 airline partners. NIAL plays a vital role in supporting connectivity, tourism, and economic activity across the Northeast, providing essential links for communities and businesses and helping drive regional growth.

NIAL aimed to refinance its existing debt package and establish a sustainable, cost-effective financing structure to support ongoing passenger growth and investment in the airport. 

NatWest served as the Sole Debt Advisor, leveraging its extensive experience in the Airport sector, longstanding working relationship with NIAL and drawing on expertise in Debt Advisory, Ratings, Sustainable Finance, Hedging, and Private Placements.

NatWest collaborated closely with NIAL and its owners, to develop and structure a financing solution that optimised the existing capital structure through retaining existing Private Placement notes and raising financing of £364m taking the total debt structure to ~£440 million. The structure included a Green Use of Proceeds (UoP) Loan and a Sustainability-Linked Loan (SLL), with the green UoP categories and SLL KPIs supporting NIAL’s ambition to be a Net Zero Carbon Airport by 2035 and its Net Zero Roadmap. 

As Sole Debt Advisor the NatWest team was able to successfully attract strong market interest, securing competitive pricing and terms. Alongside upsizing the overall financing, bringing in new lenders to complement the funding group. The NatWest hedging team also worked with the customer to establish an appropriate interest rate hedge strategy that aligned to the new facilities and also secured competitive pricing and terms. NatWest's Syndicated Loan Agency team served as the incumbent agent prior to the refinance and continued in that role for this transaction. They worked closely with the advisory team and the lender syndicate to ensure all documentation, approvals, consents and funding were delivered on time, while remaining mindful of the transaction’s target closing.

NatWest is pleased to have also provided a top tier balance sheet commitment as a Mandated Lead Arranger under a separate NatWest Bank lending team.

The refinancing provides NIAL with a robust and cost-effective capital structure, strengthens its financial position and supports its long-term sustainability strategy whilst highlighting NatWest’s advisory expertise in UK infrastructure finance.

Mark Hunt, Chief Financial Officer at Newcastle International Airport said "We are delighted to have completed the refinancing process, which provides a competitive and sustainable financing package that supports our long-term strategy and Net Zero ambitions. NatWest’s expertise and collaborative approach helped us attract very strong interest from lenders, demonstrating the market’s confidence in the Airport. The agreement will enable us to continue to deliver our investment plans, enhance the customer experience, attract new airlines and routes and achieve our sustainability goals.”

Additionally, Gazal Heda, Head of Debt Advisory at NatWest commented "We are proud to have supported Newcastle International Airport on this landmark transaction. Acting as Sole Debt Advisor, we brought together expertise from across the bank to deliver a competitive and sustainable financing solution that meets the airport’s long-term objectives. This reflects our commitment to helping clients achieve resilience and growth while advancing their sustainability strategy."

This transaction positions NIAL to continue delivering essential connectivity for the Northeast while advancing its sustainability agenda. NatWest remains committed to supporting infrastructure clients with innovative financing solutions that enable long-term growth.