Global Ports Regulatory News (GPH)

Global Ports Holding Plc

GPH agrees concession terms for Las Palmas de Gran Canaria Cruise Port, the Canary Islands

Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent cruise port operator, is pleased to announce that Global Ports Canary Islands S.L. ("GPCI"), an 80:20 joint venture between GPH and our local partner Sepcan S.L., has agreed on the terms for a 40-year concession agreement to operate Las Palmas de Gran Canaria Cruise Port, Canary Islands, Spain.

The addition of Las Palmas de Gran Canaria Cruise Port takes the total number of cruise ports to 22 across the Caribbean, Mediterranean, South Atlantic, Asia and Northern European cruise regions.

This concession agreement follows GPH's announcement on 10 November 2021 that GPCI had been awarded preferred bidder status to operate cruise port concessions for Las Palmas Cruise Ports. This preferred bidder status covered concessions for the port of Las Palmas de Gran Canaria, port of Arrecife (Lanzarote) and Puerto del Rosario (Fuerteventura).

The Group, GPCI and the Port Authority of Las Palmas continue to work towards finalising the 20-year concessions for the port of Arrecife (Lanzarote) and Puerto del Rosario (Fuerteventura). The concessions for these ports are expected to be agreed upon before GPH's half-year end on 30 September 2022

GPH expects to take over cruise port operations at Las Palmas de Gran Canaria, Arrecife and Puerto del Rosario in calendar Q4-2022. Although there can be no certainty as to the timing or that the final conditions will be satisfied. A further announcement will be made when it is appropriate to do so.

GPCI will invest approximately €40 million into constructing a new cruise terminal in Las Palmas and modular terminal facilities in Marmoles pier in Arrecife and Puerto del Rosario in Fuerteventura. The debt financing for this project is expected to be secured by local banks, and GPH is in advanced discussion regarding the financing. The debt metrics are expected to align with the Group's historical precedents.

Update on additional port operations

GPH would like to take this opportunity to provide an update on recent steps taken to expand the smaller cruise port network in Europe.

In Italy, GPH recently signed a concession agreement with the Port Authority System of the South Tyrrhenian and Ionian seas for a 4-year renewable concession to manage the services for cruise passengers in the Port of Crotone, Italy.

As part of the concession, GPH will improve the systems and technology to improve the operational performance of the cruise port. Crotone Cruise Port is expected to welcome c24k passengers in 2022.

In Spain, GPH, through a 50/50 joint venture with local partners, recently started non-exclusive cruise port operations at Vigo Cruise Port under a concession agreement that currently runs until the end of 2024.

Vigo Cruise Port is capable of handling four small cruise ships or two large ships simultaneously and with GPH protocols and operational standards in place, it is now in a position to host cruise ships for both transit and turnaround operations. GPH's cruise port operations at Vigo are expected to host 11 cruise calls in 2022.

Global Ports Canary Islands S.L. ("GPCI"): GPH owns 80% of GPCI and Sepcan S.L. owns 20%. Sepcan is a Canary island family-owned company that has been providing services to the port of Las Palmas since 1936 and since 1998 has been focused on mooring/unmooring, luggage handling, ship's provisioning and passenger services. They also specialise in environmental services and maritime pollution prevention.