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

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news