Last checked at 28 Jun 2017 17:09
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28 June 2017
Strong investor appetite for €500 million Heathrow bond
Heathrow has today successfully placed a €500 million Class A bond with a 2032 maturity and a fixed annual coupon of 1.875%. The latest bond takes the amount raised globally by Heathrow in 2017 to nearly £900 million at a time of modest funding requirements. Heathrow expects the proceeds of the bond to be used for general corporate purposes, including the repayment of existing debt maturing in early 2018.
Heathrow received significant support for the transaction, with an order book of around €1.0 billion from more than 60 institutions globally.
The transaction further strengthens Heathrow's liquidity horizon, now extended to September 2019, while also extending the duration of Heathrow's debt portfolio.
Andrew Efiong, Heathrow's Director of Treasury, said:
"We are delighted with the level of ongoing investor interest in Heathrow and support for this transaction from across Europe - reflecting continued confidence in Heathrow's credit and another signal that Heathrow is in a strong position to deliver expansion.
This transaction is the longest-dated public bond we have issued outside the sterling market and reaffirms Heathrow's commitment to be a repeat issuer and provide liquidity to investors in every market where we establish a presence.
Heathrow is by far the largest wholly-privately financed airport in the world and continues to successfully raise debt globally across six currencies from a well-established debt funding platform. In the last five years alone, Heathrow has raised £7 billion of debt financing while becoming more affordable to passengers and achieving record service levels, all underpinning the transformation of Heathrow into western Europe's best airport."
For investor enquiries please contact Christelle Lubin on +44 20 8745 0811
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States or in any jurisdiction in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended (the "Securities Act") except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act. There will be no public offer of the securities in the United States.