Auckland International Airport wants to raise $100 million through a seven-year bond issue, a week after lifting plans for capital expenditure, and as another debt issue nears maturity.

The Auckland company will sell the unsecured, unsubordinated notes at an indicative margin of 0.95 to 1 percentage point plus the seven-year swap rate, though the final price will be set in a bookbuild, it said.

New Zealand's seven-year swap rate was recently at 3.27 per cent.

The A-rated bonds will be used for "general corporate purposes".


Auckland Airport flagged the issue last week when it told shareholders it raised forecast capex in the current financial year to between $230 million and $260 million from a range of $190 million to $205 million, and about $148 million in 2015. Some $135 million of capex is earmarked for aeronautical projects to upgrade and expand its terminal and airfield capacity for passengers and airlines, up from the $100 million previously forecast.

The offer opened yesterday and closes next Monday, and will be available only to clients of the joint lead managers Bank of New Zealand and Westpac Banking Corp, co-manager Deutsche Craigs and other approved financial intermediaries.

The issue comes ahead of the maturity this week of Auckland Airport's $100 million of listed bonds paying annual interest of 7.25 per cent.

The company's shares rose 0.4 per cent to $5.28, and have gained 24 per cent this year.BusinessDesk