Christchurch International Airport seeking up to NZ$75 mln through retail bond issue to refinance existing debt and provide future capital

ChCh airport must be the worst run monopoly in NZ.  However this is to be expected when it is 75%/25% owned by CCC and the NZ Gov't.  Which other business would spend $200 million on an expansion programme when it only makes an annual $15 million profit?   CCC would get a far better return by selling the airport and putting the money in a term deposit.  But when has economic sense been found at CCC?

Govt steps in to help Canterbury Uni:

University of Canterbury welcomes government support

The University of Canterbury announced on 1 August that following the preparation of long term forecasts, it would be seeking Government support. After considering the UC business case, the Government has confirmed its agreement in principle, subject to a more detailed business case which will determine the level of support to be provided, to help the University of Canterbury address the financial impacts of the 2010 and 2011 earthquakes by providing capital support to advance its science and engineering capabilities.

Chancellor Dr John Wood says that the University of Canterbury warmly welcomes the Government’s confirmation of support for the UC business case.

“UC has engaged with and received broad based endorsement from Ngāi Tahu and a wide range of educational, business and community leaders. We believe that a strong university goes hand in hand with a robust, cohesive and growing economy and community. We are committed to supporting the recovery of Christchurch. Government support will help us do that even more effectively.”

Vice-Chancellor Dr Rod Carr says the University appreciates the Government’s understanding of the University’s situation and its recognition of the need for support.

“I would like to acknowledge the Government for the pace at which it has considered our business case; for recognising the significant contribution UC makes locally and nationally; and for its commitment to support the University post-earthquake”.

“We will work with the Government to determine the optimum level and options for support. This will need to be treated with some urgency to ensure that the University remains financially viable in the medium to long term”.

“Payments to UC bondholders will not be affected by this announcement.”

The Government’s commitment is an outcome of the UC Futures project which developed the University’s post-earthquake strategy to transform itself through closer partnerships with:

• The business sector

• Secondary schools

• Partner institutions

• Other tertiary education providers

• Crown Research Institutes

• Ngāi Tahu

“Another important component of our plan is a commitment to engage in the central city health and innovation precincts,” Dr Carr says.

“It reflects our vision of a university that isn’t just a place students come to when they want a degree. We see a university that is a learning environment well connected with the local community.”

Dr Carr says that the commitment from the Government is both positive and reinforces the need for the University to do what it can to ensure a sustainable future.

“With work on campus remediation well and truly underway, a busy enrolment period and this commitment from the Government, we can take heart that the University is making good progress towards recovery from the events of the past two years.”

They've got $75 million:

Christchurch International Airport Limited (“CIAL”) today announced it is closing early its offer of NZ$50 million (with the ability to accept up to a further NZ$25 million in oversubscriptions) of unsecured, unsubordinated bonds (“Bonds”). The full details of the offer are contained in an Investment Statement and Prospectus each dated 14 November 2012.



Following a successful offer period, the offer of Bonds has been heavily oversubscribed and NZ$75 million of Bonds will be issued.



The offer will close and the interest rate set on 3 December 2012. The interest rate will be set as the higher of 5.15% or the sum of the 7 year swap rate and the issue margin of 1.70%.