MAG, the UK’s leading airport group, has priced a £300m, 22-year MAG bond, with an annual coupon of 2.875% and order book that was over three times oversubscribed at around £1bn.

The group will use the proceeds of the MAG bond to fund the transformational capital investment programmes that the Group is undertaking at both Manchester and London Stansted Airports.

MANCHESTER AIRPORT £1BN
Investment at Manchester Airport £1bn transformation

Work has already begun on delivering the Manchester Airport Transformation Programme (MANTP), a £1 billion programme of work which will allow the airport to serve more passengers in its terminals and make fuller use of its current runway capacity. London Stansted Airport will commence the first stage of its works to transform the current terminal building into a dedicated departures building in 2018, in advance of a new arrivals building being built next door. The initial work will involve the creation of new check-in space and seating areas in the terminal.

Neil Thompson, Chief Financial Officer for MAG, said:

“The success of the MAG bond is a testament to the strong financial performance of the Group over the past 3 years, which has delivered over 40% earnings growth, and demonstrates the confidence of a wide number of UK and international blue-chip investors in MAG’s future growth strategy.

“Manchester and London Stansted airports both provide vital international connectivity for the UK with the Group operating routes to over 280 destinations. Our plans for significant investment at Manchester and Stansted will not only improve the experience for passengers and airlines using our airports but also provide the foundations to unlock their significant future growth potential.”

MAG mandated NatWest Markets as Arranger and Bookrunner on the transaction, alongside Barclays and BNP Paribas who also acted as Bookrunners. Co-Managers were CIBC, Handelsbanken, MUFG and NAB.

MAG also has a substantial property business, with over £600m of investment property assets across its airports, and has a 50% investment in the £1bn, 5m sq ft Airport City development at Manchester Airport. Its MAG USA business, meanwhile, works with airports to develop and operate terminal and retail solutions, passenger lounges and car parking facilities.  

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