Auckland International Airport plans to sell up to $100 million of six-year bonds, replacing a note set to mature next week
A $100m bond which matures on October 17, paying annual of 5.47 per cent and is currently trading at a yield of 2.5 per cent. The new offer is for $75m with up to $25m in oversubscriptions, maturing in April 2023.
The 2023 bond will open with an indicative margin range of 0.82 per cent to 0.87 per cent per year, which at today's six-year swap rate of 2.88 per cent would see the airport operator pay annual interest of between 3.7 per cent and 3.75 per cent. The actual margin and interest rate will be announced on October 11 following the completion of the bookbuild.
The bonds are expected to be assigned a long-term credit rating of A- by Standard and Poor's, Auckland Airport said.
In August, the airport said it may need balance sheet support toward the end of the 2018-2022 period as it implements a $1.9 billion infrastructure investment programme that includes a new runway by 2028.