Wellington Airport plans to sell $60 million of 8-year bonds

Monday 25th July 2016

Wellington International Airport plans to sell as much as $60 million of eight-year bonds, joining a growing number of companies taking advantage of record low-interest rates through the debt market.

The Wellington-based company is considering the offer of unsecured, unsubordinated, fixed-rate bonds maturing on Aug. 5, 2024, to New Zealand retail and institutional investors for "general corporate purposes", it said in a statement.

The company expects to pay a margin on the bonds of between 1.65 percent to 1.75 percent per annum above the eight-year swap rate, which was recently at 2.3 percent, and said the interest rate will be at least 4 percent per annum. The margin and interest rate will be detailed following a bookbuild process, which is expected to be completed on July 29. The bonds will be issued on Aug. 5 and will be listed on the NZX debt market.

The airport company is two-thirds owned by publicly listed investor Infratil and one-third owned by the Wellington City Council.

ANZ Bank New Zealand and Forsyth Barr are the joint lead managers for the offer.

BusinessDesk.co.nz

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