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Auckland Airport mandates MUFG, Westpac for AUD bond issue

Auckland Airport has seen $700 million in interest for its potential 6.15% Australian-dollar bonds offering

James Arbuthnott
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Auckland International Airport has seen around $700 million in indicative interest in a new bond issue AAP/ Mark Baker

Auckland International Airport has mandated MUFG and Westpac to test the Australian dollar market for a 10-year bond issue and has received $700 million worth of interest from potential buyers.

Despite the 190 basis point coupon on top of high Australian dollar cash rates, the NZX-listed airport has already seen indicative interest of $670 million from the Australian dollar bond market on top of $30 million from MUFG and Westpac as arrangers for the issue.

The bonds will be ranked senior unsecured and indicative pricing is at 6.615%, according to a term sheet seen by Capital Brief.

Auckland Airport is New Zealand's largest commercial airport with a domestic network to 23 destinations. It is the country's main domestic carrier Air New Zealand's hub, located 26kms from Auckland.