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Auckland Airport's bonds snapped in sign of 'confidence'

By Paul McBeth

Wednesday 22nd October 2008

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Auckland International Airport’s NZ$30 million retail bond offer was fully subscribed and the company expects to sell a further NZ$50 million of the securities.

Holders of airport bonds maturing on November 15 will be able to exchange the debt for the new issue, the company said in a statement. Any unsold portion will be offered to the public to bring the total capital raising to NZ$80 million.

The sale is a sign of confidence in the airport at a time when global credit markets are in turmoil, said chief financial officer Jason Dale.

The bonds, rated A by Standard & Poor’s, are being sold to fund general business activities. The November 15, 2016 bonds pay annual interest of 8%. First NZ Capital is the lead manager for the issue.

Auckland Airport stock traded unchanged at NZ$1.85 and is down 36% this year.

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