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Auckland Airport bond issue fully subscribed

By Paul McBeth

Wednesday 5th November 2008

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Auckland Airport raised $130 million selling bonds to retail investors, in a sign the global credit crunch hasn’t dimmed demand for investment grade debt.

“We see the strength of demand for the offer as a strong signal that investors view Auckland Airport as a relatively safe port in an economic storm,” said Jason Dale, Auckland Airport chief financial officer.

The airport will use the money raised to cover general operating expenses and repay existing debt. The bonds, which have a coupon of 8% and mature in November 2016, are rated ‘A’ by Standard & Poor’s.

Auckland Airport posted a 3.3% increase in net profit for the year ending June of $103.7 million, driven in part by strong domestic passenger numbers.

Power companies Genesis Energy and TrustPower are considering bond issues by early 2009.

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