Manchester Airports Group (MAG) has successfully raised £350m (US$454m) in the UK capital markets through the issuance of a 25-year bond.
MAG has disclosed that the order book for the bond was four times oversubscribed, totaling around £1.4bn (approximately US$1.8bn). The Group plans to use the proceeds of the bond to fund the transformational capital investment programs that the group is undertaking at its airports, as well as for general corporate purposes.
One project to benefit will be the Manchester Airport Transformation Programme (MAN-TP), which is currently well underway after starting in 2017. A new pier and multi-storey car park for Terminal 2 are now fully operational as part of MAN-TP. The £1bn (US$1.3bn) program of work will enable the airport to serve more passengers in its terminals and to make full use of its current runway capacity.
Neil Thompson, chief financial officer, 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 of the key blue-chip UK institutional investors and demonstrates the confidence those investors have in MAG’s track record and future growth strategy.
“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, enabling our airports to further unlock their significant future growth potential.”