Wellington Airport plans to sell $60m of eight-year bonds
The company is considering the offer of unsecured, unsubordinated, fixed-rate bonds maturing on August 5, 2024.
Wellington International Airport plans to sell as much as $60 million of eight-year bonds, joining a growing number of companies taking advantage of record low interest rates through the debt market.
The Wellington-based company is considering the offer of unsecured, unsubordinated, fixed-rate bonds maturing on August 5, 2024, to New Zealand retail and institutional investors for "general corporate purposes", it said in a statement.
The company expects to pay a margin on the bonds of between 1.65% to 1.75% per annum above the eight-year swap rate, which was recently at 2.3%, and said the interest rate will be at least 4% a year. The margin and interest rate will be detailed following a bookbuild process, which is expected to be completed on July 29. The bonds will be issued on August 5 and will be listed on the NZX debt market.
The airport company is two-thirds owned by publicly listed investor Infratil and one-third owned by the Wellington City Council.
ANZ Bank New Zealand and Forsyth Barr are the joint lead managers for the offer.
(BusinessDesk)
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Tina Morrison
Mon, 25 Jul 2016
Mon, 25 Jul 2016
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Wellington Airport plans to sell $60m of eight-year bonds
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