Low interest rates helped renew the attraction of the NZX's debt market for companies to raise funds last year, and the airport tapped that market two other times in 2016. It currently has four bonds listed on the NZX, and the latest offer will be allotted on Friday.
Those bonds include one $75m tranche paying 6.25 per cent maturing in May 2021 and another $75m tranche paying 4.25 per cent and maturing in May 2023, some $60m of notes paying 4 per cent and maturing in August 2024, and $59.1m of debt paying 5 per cent and coming due in June 2025.
Wellington Airport has been upgrading facilities, spending $73m on a new domestic passenger terminal and upgrading its international terminal. Majority owner Infratil recently said it expects $90m of capital expenditure in the current financial year, funded by recent bond issues, to improve passenger terminal services, a ground transport hub including 1,000 car parks, and a 134-room hotel.
The airport has also been advocating for an extension to its runway to make room for long-haul flights from Asia and the US. Infratil has been pushing for central and local government to foot most of the $350m price tag, saying the project wasn't commercially viable on a standalone basis, but that the wider regional economy would be a beneficiary if it went ahead. The runway debate has attracted opposition from some quarters, which is expected to play out during Environment Court hearings in June.
As at September 30, the airport had $350m of bonds outstanding, including wholesale notes, and largely undrawn banking facilities of $100m.