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Highlights
- AIA is providing up to $100 million of 5-year fixed rate bonds.
- The Group revised indicative margin for its bond offer on Wednesday to 0.7% per annum.
- Bonds are due to mature on 17 November 2026.
Auckland International Airport Limited (NZX:AIA; ASX: AIA), NZ’s largest commercial airport, revised indicative margin for its retail bond offer on Wednesday.
The Group is offering up to $100 million of five-year fixed rate bonds to NZ retail and institutional investors with a capacity to accept $50 million in oversubscription at AIA’s discretion.
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The Offer opened on 8 November with an indicative margin between 0.7% and 0.8% p.a. with bonds maturing on 17 November 2026.
RELATED READ: Auckland Airport (NZX:AIA) unveils retail bond offer
AIA notified on Wednesday that the firm order book at the original indicative margin range of 0.7% to 0.8% p.a. was in excess of $125 million. Subsequently, the Group has modified the indicative margin now to be 0.7% p.a.
Books closed for Retail Offer
AIA also announced that books had been closed for the retail bond offer. The Group confirmed that $150 million has been allotted to the participants following the conclusion of the bookbuild process.
Interest rate for the fixed rate bonds will be 3.29% p.a., reflecting a margin of 0.7% over the underlying swap rate.
The Bonds are likely to be given a long-term credit rating of A- by S&P Global Ratings. There is no public pool for the offer with all bonds reserved for BNZ and Westpac clients.
Road ahead
The COVID-19 pandemic continues to impact AIA’s performance.
Auckland Airport is positioning itself to prepare for the recovery in air travel. This has come after a year of cautious financial management, the reset of the infrastructure development programme and emerging revival in international aviation.
RELATED ARTICLE: AIR & AIA: How are airline stocks surviving the pandemic?
Demand for international travel is likely to rebuild in 2022 as the vaccination rollout continues over the rest of this year. AIA has also been progressing on a series of projects with an aim to deliver an integrated airport terminal, increased airfield, and an enhanced transport system that would serve Auckland and NZ well into the future.
Auckland Airport has completed a significant revamp of its approach to sustainability, setting new goals and targets, including a new target of being Net Zero Carbon by 2030 over the past year.
On 10 November, AIA ended the trading session at $8.14, down 0.37% from its previous close.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)