MAG Secures £350m for Airport Development Projects

(Photo: MAG)

Airport operator MAG has announced it has raised £350m in the UK capital markets through the issuance of a 25-year bond. MAG said that the order book for the bond was four times oversubscribed, totalling c.£1.4bn and it plans to use the proceeds of the bond to fund the capital investment programmes it is undertaking “at its airports as well as for general corporate purposes.”

Associated projects include the Manchester Airport Transformation Programme (MAN-TP) which started in 2017, with a new pier and multi-storey car park, as part of an expanding Terminal 2, now fully operational. Meanwhile, the London Stansted Airport Transformation Programme (STN-TP) began in 2018. The next phase will involve the completion of work on eight new aircraft stands, new check-in desks, the completion of a multi-storey car park and upgrading the hold baggage screening system.

Neil Thompson, chief financial officer for MAG, said: “The success of the bond is a testament to the strong financial performance of the Group over several years. The bond was supported by almost all the key blue-chip UK institutional investors and demonstrates the confidence those investors have in the future growth strategy for MAG and its track record.

“Our significant investment at Manchester and London Stansted airports, which is already well underway, is already improving the experience for passengers and airlines using our airports. Looking ahead, the investment we are delivering will be transformative and allow our airports to further unlock their significant future growth potential.”

MAG mandated HSBC as Arranger and Active Bookrunner on the transaction, alongside NatWest Markets. Barclays, BNP Paribas, MUFG and NAB also acted as Passive Bookrunners. Co-Managers were CIBC and Handelsbanken. In addition, Linklaters acted as MAG’s legal counsel, whilst A&O acted for the Bookrunners.