London-based M&G has invested €70 million in SOF Connect EAD, the operator of Vasil Levski Sofia Airport as part of a project to modernise and expand Bulgaria’s largest airport.
M&G’s financing is part of a wider €450 million, 22-year senior secured private placement that backs SOF’s long-term plans which includes the construction of a new passenger terminal. SOF Connect EAD is wholly owned by global infrastructure investor Meridiam.
The expansion will enable Sofia Airport to serve passenger demand that is expected to accelerate following Bulgaria’s accession to the Schengen Area, and the most recent adoption of the euro as well as the airport’s position as the country’s principal international hub, vital for business, trade and tourism.
M&G’s Infrastructure Debt team sits within the firm’s £81 billion private markets division. M&G is one of the largest debt investors in airports with around £1.1bn of debt held in airport operators globally.
The transaction is funded primarily by long‑term annuity capital from M&G’s Life business, alongside third-party investment. It also highlights M&G’s expansion in the UK pensions de-risking market, where it expects to write £3-4bn of annuity transactions annually, building on an existing annuity book of around £21bn.
Beata Sperling-Tyler from M&G’s Infrastructure Debt team, said: “This investment demonstrates our ability to support such essential assets with long‑term financing. Airports are critical to economic development, connectivity and trade, and the modernisation of Sofia Airport is one of the best examples of it. As we continue to build our footprint across the continent, we remain focused on financing critical assets that deliver sustainable growth and resilient, long-dated outcomes for our investors.”
