openPR Logo
Press release

InfraNews Case Study: BAA Broadens its Investor Base with Inaugural US Dollar Bond

08-03-2011 07:58 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: InfraNews

UK airports operator BAA refinanced most of its outstanding medium-term bank debt in June with an inaugural USD1bn bond issue that significantly furthered the company’ strategic plan of broadening its investor base.

The BAA funding securitisation vehicle, set up by the Ferrovial-led Airport Development and Investment (ADI) consortium in August 2008 to refinance its GBP10.3bn acquisition of the company two years earlier, has now issued significant volumes of capital markets debt in its three important target currencies – sterling, euros and US dollars.

“The key reasons for issuing in dollars are to further diversify our funding sources and to have access to the deepest capital market in the world,” explained Andrew Efiong, BAA’s head of debt investor relations. “We’re a major bond issuer in the global markets by any yardstick, and it is important for us to have the option to fund in as many different currencies as possible.”

While the sterling, euro and US dollar markets will continue to provide the bulk of BAA’s financing requirements in future, Efiong added that the company may explore other possibilities in the future. “Clearly there are a number of other vibrant and viable bond markets in which we could issue going forward.”

Widening Corporate Spreads
Although the pricing on the 10-year bond, at 200bps over the benchmark 3.125% US Treasury due May 2021, was higher than the company and its bookrunners – Bankia, BBVA, BNP Paribas, Citigroup, Crédit Agricole, HSBC, RBC Capital Markets, RBS and Santander – would have been expecting a month earlier, this reflected the general market retreat in response to heightened fears about the eurozone sovereign crisis rather than any specific concerns about the BAA transaction.

“Corporate spreads had widened by some 10bps-15bps in a short time during a period of volatility that coincided with their planned launch,” commented Katrina Haley, head of structured bonds for EMEA at HSBC. She added that the impact on the overall cost of funding for BAA had been less significant, as the yield on the 10-year US Treasury had tightened, and the company had been pleased with the overall outcome.

To read the full article, click here:

For more information about InfraNews ( and find out if you are eligible for a free trial call Ken McAllister on + 44 (0) 207 786 9282 or e-mail at Please remember to quote your reference: INPR24OPR.

InfraNews is the most relevant, timely & accurate provider of news, analysis & research about the latest greenfield & brownfield infrastructure projects & deals across the European and global infrastructure communities.

1st Floor
4 City Road
Tel: +44 (0) 207 786 9291
Fax: +44 (0) 207 256 7926
Contact: Celine Brissay

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release InfraNews Case Study: BAA Broadens its Investor Base with Inaugural US Dollar Bond here

News-ID: 185957 • Views: 1047

More Releases from InfraNews

Why the Eurozone Sovereign Crisis is a Bad Thing for Infrastructure Investors
By Peter Allison To say that fear stalked European financial markets during August is something of an understatement. While temperatures rose in Greece, Italy and Spain, markets headed in the opposite direction. The underlying theme was volatility. The swing in yields on ten-year Spanish and Italian government treasuries was an eye-watering 1% during one week in August. Equities dropped in value and then recovered slightly. Then they fell again. The price
Will KKR, Munich Re T-Solar Investment Kickstart Renewables M&A In Spain?
By Peter Kneller The Spanish solar market has been experiencing some strange goings-on of late, most notably KKR and Munich Re’s investment in Grupo T-Solar’s 168MW Spanish and Italian solar portfolio. The deal – one of the largest investments in an operational solar PV portfolio in the renewable energy sector’s short history - took place against the background of increased regulatory pressure in the country’s solar market. The bulk of installed solar PV
InfraNews Case Study: Multicurrency Programme Sets a Precedent for Infra Investo …
The NOK3.8bn (EUR477.8m) of sterling, dollar and kroner bonds that a venture between UBS International Infrastructure Fund and CDC Infrastructure issued in the second half of June to finance its acquisition of an 8% stake in Gassled has established a template for other recent financial investors in Norway’s offshore gas pipeline company to follow. Further bond issues to provide acquisition finance for shares in the company that ships a quarter
Why Europe’s Airport Sector is Poised for an M&A Boom
By Michael Dunning Infrastructure deals in the European airports sector have been few and far between in the last 18 months. Other than Global Infrastructure Partners’ (GIP) GBP1.5bn acquisition of the UK’s Gatwick Airport at the end of 2009 and a couple of disposals by Ferrovial – including a 65% shareholding in Naples Airport – there have been slim pickings for infrastructure investors. But that is all about to change. In

All 5 Releases

More Releases for BAA

Global Air Charter Services market was 12338.54 M USD in 2018 and it is expected …
In 2018, the global Air Charter Services market size was 12338.54 M USD and it is expected to reach 27145.19 M USD by the end of 2025, with a CAGR of 11.96% during 2019-2025 View Full Report : This report focuses on the global Air Charter Services status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Air Charter Services development in United States, Europe,
iPGARD Announces New 10,000 Square Foot Location in Las Vegas
iPGARD, the developers and manufacturers of cutting edge cyber-security solutions, is expanding their efforts to its new location at 3291 N. Jones Blvd., Las Vegas, NV 89108. The new manufacturing facility boasts 10,000 square feet to meet the growing cyber-security demand of its Secure KVM technology solutions. “We are excited about the new facility,” says iPGARD’s spokesperson. “Our main goal is to provide quality products to our clients and customers in
APCOA takes over pre-booking at Gatwick Airport
APCOA has undertaken a five year contract to provide London Gatwick Airport with a fully managed pre-booking, yield management and call centre service. Gatwick is the world’s largest airport for car park pre-booking. The new booking engine is a clear five-step process which is now available at The website allows the customer to select and book a car parking space in less than two minutes. It supports customers whose
The British International Freight Association (BIFA) has welcomed the initial findings of today’s report by the Competition Commission (CC), which calls for BAA to sell two of its three London airports and another in Scotland. Commenting on the report, BIFA Director General Peter Quantrill said: “BAA has played an important role in the development of airport infrastructure in the UK but times have changed and it is no longer viable
Beeping don't live here anymore
BAA has increased passenger safety and reduced noise nuisance at Heathrow Airport’s Terminal Four. BAA is currently fitting Terminal Four’s fleet of electric vehicles, such as passenger transport and luggage carriers, with bbs-tek, white sound movement alarms. The technology was initially trialled at Stansted Airport and following its phenomenal success, BAA decided to extend it to Heathrow. The bbs-tek alarms pioneered by and unique to Brigade Electronics, are a safer and more
Baltic Air Charter Association Issues Strong Statement Against New Charges at He …
LONDON, 13 March 2008 – The Baltic Air Charter Association (BACA) and its members are calling for an immediate review of today’s decision by the Civil Aviation Association (CAA) to permit higher landing charges at Heathrow and Gatwick Airports. BACA is asking the government to quickly hold consultation meetings with all the interested parties, so that a solution can be found, which will not be detrimental to the English