US$100m bond issue for airport

Auckland International Airport. Photo / Dean Purcell

Auckland International Airport is meeting private bond investors in the US to discuss selling notes to refinance debt due in March.

Auckland Airport plans to issue at least US$100 million of bonds and hired Commonwealth Bank of Australia to help manage the transaction, a person familiar with the matter said.

The airport joins Mighty River Power and Transpower New Zealand in approaching US private investors as New Zealand companies seek to diversify their financing sources and take advantage of record-low yields in the world's biggest corporate bond market.

The airport has a $125 million term loan due in March, according to data compiled by Bloomberg.

Transpower sold US$150 million of 12-year notes in September.

- NZPA