Little is known about it, but two Quebec institutions, the Caisse de dépôt and PSP Investments, control Budapest airport. However, the Hungarian government would very much like to throw them out of the picture.
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La Caisse has been a shareholder in the airport since 2006. It currently holds a 21.2% interest, while PSP, which manages the pension fund for federal civil servants, has a 55.4% stake.
Political interference
In October, Bloomberg reported that a consortium close to Hungarian Prime Minister Viktor Orbán made an unsolicited offer to acquire Budapest airport. One of the consortium members was MOL, an oil and gas company run by an ally of Mr. Orbán and in which the state is a shareholder.
Then, in November, Bloomberg wrote that Hungary intervened with the European Bank for Reconstruction and Development (EBRD) to block a € 50million (just under C $ 75million) loan application filed. by Budapest airport in connection with the COVID-19 pandemic.
The head of infrastructure of the Fund, Emmanuel Jaclot, declined to comment on what he called “rumors”, but he acknowledged that some investments present political risks.
“To date, we have never had this kind of risk materialized, but it could come,” he said.
“In the case of Budapest, we have a concession contract which is quite solid, so we will see what can happen”, he added, noting that the airport had managed to generate “minimal profitability” in 2020.
Before the pandemic, Budapest airport revenues had grown 43% in three years.
Heathrow
The Caisse de dépôt also owns a 12.6% stake in Heathrow Airport, near London. In 2020, the major hub suffered a loss of $ 3.5 billion as passenger numbers plummeted from 81 million to 22 million.
“We ask ourselves the question regularly: is it still a good investment? And for now, yes, we want to stay invested in Heathrow, ”said Mr. Jaclot.
The manager specified that in infrastructure, the Fund can hold assets for long periods. The institution has been co-owner of Heathrow since 2006.