Auckland International Airport Revised The Indicative Margin Range On Its New Fixed Rate Bonds

  • Sep 26, 2018 AEST
  • Team Kalkine
Auckland International Airport Revised The Indicative Margin Range On Its New Fixed Rate Bonds

On 26 September 2018, Auckland International Airport Limited (ASX:AIA) trimmed the indicative margin range of its new six year fixed rate bonds to 0.95% - 1% which was 0.95% to 1.05% in the initial announcement of 24 September 2018. Following this the Auckland Airport’s share price slips down by 1.022% as on 26 September 2018. Auckland Airport also informed that the offer had closed and NZ$150 has been allocated to the participants in the bookbuild process.

On 24 September 2018, the Auckland Airport offered these fixed rate bonds with issued amount of NZ$125 million and also with the ability to accept oversubscription up to NZ$50 million. The maturity date of the bond is 10 October 2024. As per the recent announcement the issue amount is NZ$150 million and the interest rate for the bonds will be 3.51 cents per annum which reflects the margin of 0.95% over the underlying swap rate. The interest will be paid on 10 April and 10 August in each year until and including the maturity dates.

 In financial year 2018 due to the reduction in the international and aeronautical prices, the total revenue of Auckland International Airport saw a little increase with $122.1 million in FY 2018 as compared to $119.6 million in FY 2017. The expenses of the company also increased from $156.2 in FY 2017 million to $177.5 million in FY 2018. The reported net profit after tax has increased to $650.1 million in FY2018 from $332.9 million in FY 2017. The capital expenditure of the Airport increased by 8.1% to $405.2 million. Auckland Airport is expecting Capital expenditure to be in between $450 million and $550 million for next year. In the past three years, Auckland Airport has released 12 new airlines and 21 new routes and increased the capacity by 29% by connecting Auckland with new cities of 140 million. 

Auckland International Airport’s total passenger growth for the month of August 2018 has been of the order of 6.3 per cent while international passengers’ number rose up by 7.4 per cent. There was a 6.6 per cent rise in domestic passengers. The above percentages were noted against prior year corresponding period. Additional capacity through Asia and Pacific Island routes boosted the growth. The group also reported for a 5.9 per cent growth in Australian visitor arrivals on August 2017 figure while there was a decline in Tasman capacity.

AIA’s share traded at $6.80 with a market capitalization of $8.24 billion as on 26 September 2018 (AEST 4:00 PM).

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