Heathrow6.45% S Regulatory News (88BX)

Not for release, publication or distribution in whole or in part, directly or indirectly, in or into the United States of America

1 November 2018

Strong investor appetite for £300 million Heathrow bond

On 31 October 2018, Heathrow Finance plc successfully placed a £300 million bond which matures in March 2024 and has a fixed coupon of 4.75%. The transaction generated a solid order book which enabled the bond to be priced inside initial expectations.

The transaction continues to demonstrate the strong global investor interest in Heathrow and provides a further demonstration of Heathrow's extremely strong position notwithstanding the final outcome of the Brexit negotiations.

With the completion of this transaction, Heathrow will have raised close to £1.9 billion during 2018 across all three levels of its capital structure. The proceeds of the bond will be used for general corporate purposes and to refinance existing debt.

Sally Ding, Director of Treasury and Corporate Finance said:

"We are pleased to complete this transaction which continues to demonstrate strong investor support for Heathrow across all levels of the capital structure. The delivery of Heathrow's expansion continues, and with around £1.9 billion raised in 2018 globally at very competitive cost, investor support remains stronger than ever."

For investor enquiries please contact James Hoskins on +44 20 8745 0811

This announcement does not contain or constitute an offer to sell or issue or a solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan or the United States or in any jurisdiction in which such offer or solicitation is unlawful prior to registration or qualification under the relevant securities laws of any such jurisdiction and is not intended to provide the basis for any credit or other evaluation of the securities.

The notes may not be offered or sold in the United States or to, or for the account or benefit of U.S. Persons (as defined in Regulation S under the Securities Act) absent registration or exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). In particular, the notes have not been, and will not be, registered under the Securities Act, and may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly directly or indirectly within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. Unless an exemption under the relevant securities laws is applicable, the notes may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, in or into Australia, Canada, or Japan, or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, or Japan, or any other jurisdiction if to do so would breach any applicable law, or require registration thereof in such jurisdiction. No public offering of the notes is being made in the United States. In addition, any relevant securities registration or other clearances under the applicable securities laws have not been and will not be made or obtained with or from the relevant authorities in Australia, Canada, Japan or any other jurisdiction except the United Kingdom.

This communication is not being distributed to or directed at persons other than persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their businesses or who it is reasonable to expect will acquire, hold, manage or dispose of investments (as principal or agent) for the purposes of their businesses where the issue of the notes would otherwise constitute a contravention of section 19 of the Financial Services and Markets Act 2000 ("FSMA") by us. In addition, no person may communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received by it in connection with the issue or sale of the notes other than in circumstances in which section 21(1) of FSMA does not apply to us.