Auckland Airport says demand for bonds "hot"
22nd Oct 08, 11:14am
Auckland Airport has announced that its NZ$80 million public bond offer has been fully subscribed, despite volatile markets and uncertainty over whether the Deposit Guarantee Scheme would restrict demand for unguaranteed corporate bonds. "This is an important and exceptionally pleasing expression of the market's confidence in Auckland Airport at a time of very uncertain investment conditions. The strength of the demand indicates that quality, long-term investment opportunities will always remain in vogue," Auckland Airport Jason Dale said. The full subscription does not include the reserve of NZ$50 million set aside for holders of existing Auckland Airport unsubordinated, unsecured, fixed rate bonds maturing on 15 November 2008. Those existing bond holders can apply to have all or part of the principal of those bonds exchanged on maturity for the bonds under this offer. The bonds will be direct, unsecured, unsubordinated debt obligations of Auckland Airport. The bonds will have a maturity date of 15 November 2016. The minimum holding in respect of the bonds is $10,000 and in multiples of $1,000 thereafter.