BAA has announced the successful placing of its inaugural Swiss franc debt capital markets transaction, a CHF 400 million five-year bond.
The bond has a fixed annual coupon of 2.5%. Proceeds from the bond issue will be used to reduce the amount outstanding under BAA London airports' revolving capital expenditure facility.
The bond issue follows a well-received roadshow in Switzerland which provided the basis for strong investor support for the transaction. The bond was placed with both traditional institutional investors and private banks that provide access to Swiss retail investor demand for high quality, well-known international corporate issuers.
Following BAA's successful inaugural US dollar bond completed in 2011 this marks the next step in BAA's strategy of diversifying its funding sources beyond its core Sterling, Euro and US dollar markets and this diversification process is expected to continue.
Fred Maroudas, BAA's Director of Treasury, said: "This debut Swiss franc bond is important in further developing BAA's financing strategy as it marks the start of issuance in currencies that over time will be an important supplement to the group's successful existing sterling, Euro and US dollar financing platforms. This transaction demonstrates confidence in the company in the investor community and recognition of Heathrow's resilience and critical role in the global aviation industry. Safe, resilient regulated infrastructure companies like Heathrow are a good investment for retail bond investors and we are delighted to have received such strong support from Swiss retail sector."
BAA places five-year CHF400 million bond
