Auckland International Airport's (AIA) $150 million fixed rate bond offer closed fully subscribed yesterday.
AIA will issue $100 million of 10-year bonds and $50 million of seven-year bonds.
Funds raised from the offer will be used to repay some of the $200 million bridge facility arranged to cover the company'srecent capital return to shareholders.
AIA's chief financial officer Robert Sinclair said the company was pleased with the level of interest in the bonds, particularly from New Zealand fixed interest institutional investors.
"As the Airport continues to invest in expanding its capacity, the domestic capital markets will continue to be an important source of debt finance for the company. As such, we were keen to ensure strong participation in this issue," he said.
The bonds' interest rate will be set tomorrow.
Shares in AIA were down 2c at $1.97 in a broadly weaker sharemarket this morning, having traded between $1.79 and $2.43 over the past 12 months.
