MAG, the UK’s leading airport group, has successfully raised £350m in the UK capital markets through the issuance of a 25 year bond, at a competitive interest rate coupon of 2.875%. MAG has disclosed that the order book for the bond was 4 times oversubscribed, totalling c.£1.4bn.
MAG plans to use the proceeds of the bond to fund the significant and transformational capital investment programmes that the Group is undertaking at its airports as well as for general corporate purposes.
For example, the Manchester Airport Transformation Programme (MAN-TP) is well underway, having started in 2017, with a new pier and multi-storey car park, as part of an expanding Terminal 2, now fully operational. Overall, the £1 billion programme of work will allow the airport to serve more passengers in its terminals and make fuller use of its current runway capacity.
Neil Thompson, Chief Financial Officer for MAG, said: “The success of the bond is a testament to the strong financial performance of the Group over several years. The bond was supported by almost all the key blue-chip UK institutional investors and demonstrates the confidence those investors have in the future growth strategy for MAG and its track record.
“Our significant investment at Manchester and London Stansted airports, which is already well underway, is already improving the experience for passengers and airlines using our airports. Looking ahead, the investment we are delivering will be transformative and allow our airports to further unlock their significant future growth potential.”