Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Auckland Airport cuts fine deal in US$250M bond issue

Auckland Airport cuts fine deal in US$250M bond issue

By Paul McBeth

Jul. 25 (BusinessDesk) - Auckland International Airport has sold US$250 million of bonds in the final tranche of a financing package to pay for its capital return to shareholders earlier this year at what it says is the lowest borrowing margin for a facility of its kind for a decade.

The country's major gateway sold the debt on the US Private Placement market, a private bond market, in a single 12-year tranche paying annual interest of 3.61 percent, it said in a statement. The proceeds will repay a $130 million bridging loan it took on to help fund its capital return and an upcoming $125 million bond maturity in November. The funds have been swapped back into New Zealand dollars, and provide the airport funding at the New Zealand three-month bank bill rate, currently at 3.71 percent, plus 1.255 percent.

"We are thrilled with the pricing and volume achieved, which validates our decision in 2010 to diversify our borrowing sources and seek long-term funding via the USPP market," chief financial officer Simon Robertson said. "Notably, this transaction has achieved the lowest borrowing margin versus United States Treasuries for a New Zealand company in the USPP market in the last decade."

The deal is the third and final debt transaction the airport will make to refinance the $454 million capital return it made to shareholders in April, when it cancelled one-in-10 shares at $3.43 apiece.

The shares were last at $3.81, and have gained 6.6 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news