Last checked at 23 Aug 2018 11:01
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23 August 2018
Heathrow successfully extends its duration in Canada with its second Maple issue in 2018: a new C$400 million 12-year bond
Heathrow has successfully placed a C$400 million Class A bond with a 2030 maturity and a fixed coupon of 3.782%. The transaction marks the first time in history a UK borrower accesses a maturity beyond 10 years in the Maple market.
Canadian investors showed strong interest, with demand close to C$900 million confirming the ongoing appetite from international investors after Heathrow's expansion was boosted last June by an overwhelming parliamentary support.
The bond priced at 148 basis points, the tight end of the price guidance, over Government of Canada bonds. Proceeds will be used for general corporate purposes.
The transaction further strengthens Heathrow's liquidity horizon, now extended to July 2020.
Sally Ding, Director of Treasury and Corporate Finance said:
"We are delighted with the level of ongoing investor interest in Heathrow. This transaction is our longest-dated Maple issue and reflects the confidence of global bond markets in Heathrow's credit.
It contributes not only to strengthening our financial resilience by extending our liquidity horizon but also further cements strong foundations ahead of expansion."
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.
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