AIA's North Queensland airports seek A$529M for loan rollover

July 15 (BusinessDesk) – North Queensland Airports Group, which operates the Cairns and Mackay airports, has tapped its lenders for A$529 million to refinance the buy-up of assets when the gateways were privatised in 2008.

The Australian company, which counts Auckland International Airport Ltd. as a quarter-owner, will use the new facilities to fund capital expenditure over the next five years, and for working capital, it said in a statement.

The group’s other owners include JP Morgan’s Infrastructure Investments Fund, Hastings Fund Management’s Infrastructure Fund and the Perron Group.

“The completion of the refinancing by December 2011 was one of the milestones Auckland Airport had set for the investment when we acquired our stake last year,” Auckland Airport chief financial officer Simon Robertson said in a statement.

The New Zealand gateway raised $126 million through a share offer to institutions and retail investors to help fund its $166 million purchase.

Auckland Airport grabbed a stake to secure more tourists from Asia and ramp up New Zealand travel to Australia’s popular tropical region.

Auckland Airport’s shares rose 0.7% to $2.315 in trading today, and have climbed almost 16% since it bought the stake in January last year.

The Queensland State Government privatised the Cairns and Mackay airports at the end of 2008 under a 99-year lease arrangement.

(BusinessDesk) 11:25:07

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