Auckland Airport sells $25m in bonds

Monday 10th August 2009

Auckland International Airport Ltd., the nation’s busiest gateway, sold $25 million of seven-year bonds in a private placement under its existing debt programme.

The bonds, which mature on August 10, 2016, carry a coupon of 8%, the airport said in a statement. They are rated A- by Standard & Poor’s.

The proceeds of the bonds will be “substantially used to provide additional funding headroom,” S&P said in a separate statement.

The airport’s rating reflects its natural monopoly, robust passenger demand and diverse revenue streams, S&P said. Those strengths are partly offset by the company’s “weakened financial risk profile.”

S&P cut the airport’s credit rating from A in May, citing a tough aviation market in the midst of the global economic slump.

Auckland Airport sold $130m million of the same maturity bonds in November.

Shares of the airport company rose 0.6% to $1.75 on the NZX today and have gained 7.4% this year.

The company is forecast to post a 10% decline in reported profit for the year ended June 30 to $101.2 million, according to Forsyth Barr. The airport is scheduled to post its results on August 28.

Businesswire.co.nz

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