Manchester Airports Group has raised £350m in the UK capital markets through the issuance of a 25-year bond, reporting that the order book for the bond was four times oversubscribed.
MAG, which is currently amidst the £1bn Manchester Airport Transformation Programme, said that it plans to use the proceeds of the bond to fund both that project and other developments, including the expansion of London Stansted’s facilities.
The MATP started in 2017 and reached its first major landmark in April, with a new pier and multi-storey car park, as part of an expanding Terminal 2, now fully operational. Overall, the £1bn programme will give the airport capacity to continue its growth of passenger numbers and make fuller use of its current runway capacity.
Stansted’s works started last year, with the next phase set to involve the completion of work on eight new aircraft stands, new check-in desks, the completion of a multi-storey car park and upgrading the hold baggage screening system.
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 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.”
MAG mandated HSBC as arranger and active bookrunner on the transaction, alongside NatWest Markets. Barclays, BNP Paribas, MUFG and NAB also acted as Passive Bookrunners. Co-Managers were CIBC and Handelsbanken. In addition, Linklaters acted as MAG’s legal counsel, whilst A&O acted for the bookrunners.