London City Airport has signed a £490 million ( US$662 million ) senior debt package, including a capex loan and a term loan, to refinance debt coming due early next year.

Société Générale acted as mandated lead arranger and market hedge coordinator, and was the largest lender, alongside eight other banks. 

Latham & Watkins advised the bank lenders. Clifford Chance has been a long-term adviser to the airport operator.

London City Airport is London’s most central airport, located near the Canary Wharf business district. Recent infrastructure investments have further expanded its capacity. At present, it mostly features small aircraft such as Embraer 190s with 100 seats, with British Airways Cityflyer its biggest operator.

Given restrictions on the number of air movements allowed each day, the airport has a pending application to be allowed to handle the larger Airbus A320neo model, which typically has around 164 seats in a two-class configuration.

In 2024, the Ontario Municipal Employees Retirement System ( Omers ), Ontario Teachers' Pension Plan ( OTTP ), Alberta Investment Management Corporation ( AIMCo ), Kuwait Investment Authority, and Kuwait Investment Authority unit Wren House Infrastructure Management made a £130 million cash injection to strengthen the airport’s finances, having been hit by a reduction in business traffic during the pandemic. This cash injection put the airport in a better position to refinance its loan coming due in March 2026.

Omers and AIMCo have mandated Morgan Stanley to explore options for a potential sale of their stakes. Mubadala has been named in local press reports as a potential bidder.