Melbourne Airport

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Melbourne Airport successfully prices EUR 550 million 10 year Euro Medium Term Notes

Sep 20, 2013

Australia Pacific Airports (Melbourne) Pty Limited (APAM or Melbourne Airport) has announced the successful pricing of EUR 550 million, senior secured, ten year fixed rate European Medium Term Notes (EMTN). This issue seeks to raise approximately A$785 million.

The Notes were issued under Melbourne Airport’s newly established EMTN Programme (A-/A3) at a spread of mid swaps +105bps.  The issue was 7 times oversubscribed with interest of EUR3.9 billion from  approximately 250 investors.

Mr Adam Watson, Melbourne Airport’s Chief Financial Officer said that this was another outstanding result for Melbourne Airport. 

“We are delighted with our inaugural debt raising in the Euro bond market as it will support the ongoing development of Melbourne Airport and also further diversifies our funding sources. We received overwhelming support from our new European bond investors, which is testament to our robust operating model and strong capital structure,” said Mr Watson.

“The proceeds will be used to refinance existing debt and fund capital expenditure and is consistent with our stated strategy of diversifying and extending the average maturity profile of our funding sources.”

APAM owns and operates Melbourne Airport and is the only Australian airport group to hold A-/A3 ratings.

APAM is a wholly-owned subsidiary of Australia Pacific Airports Corporation Ltd (APAC). APAC owns and operates both Melbourne Airport and Launceston Airport.

BNP Paribas, Citigroup and J.P. Morgan were Joint Lead Managers on the transaction.

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