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NEWS Last modified on June 24, 2011

BAA raises $1bn with first entry into US debt market



BAA has successfully raised $1 billion through a 10-year US bond, in its inaugural transaction in the American dollar debt capital market.

BAA has successfully raised $1 billion through a 10-year US bond, in its inaugural transaction in the American dollar debt capital market.

 


The bond, which has been placed with high quality US institutions, has allowed BAA to “further diversify its funding sources and investor base”, according to a statement from the group.

 

BAA will use the proceeds from the bond issue to complete the repayment almost all of the $7 billion debt of its two London airports Heathrow and Stansted.

 

The bond has a fixed annual rate of 4.9%.

 

Fred Maroudas, director of treasury at BAA, said: "This debut US dollar bond is a significant step in the development of BAA’s long term financing strategy as it establishes a US dollar financing platform alongside the group’s very successful existing sterling and Euro financing platforms.”

 

In the last 18 months, BAA’s London airports have raised approximately $7.2 billion in fresh debt finance.

 

The news comes as it was revealed earlier this week that BAA’s owner ­– Spanish company Ferrovial – is planning to sell its 10% stake in the group.

 

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