The trans-Tasman listed Auckland Airport is to raise NZ$1.4bn (€779m) in an institutional placement to help pay for its NZ$6.6bn multi-year development plan, including the upgrading of its domestic terminal.
The airport is raising NZ$1.2bn in a fully underwritten placement from institutional and other select investors and a NZ$200m retail offer. The new shares will be priced at NZ$6.95 per share.
The airport, built in the1960s, is undertaking a major capital investment programme to upgrade the airfield, runway and improve connectivity between international and domestic jet services to reduce minimum connection times between flights.
Carrie Hurihanganui, Auckland International Airport chief executive, said: “As the primary border of Aotearoa New Zealand and gateway to its largest city, Auckland Airport is making a once-in-a-generation investment to be resilient and fit for the future. Our infrastructure development programme continues to accelerate with the signing of the Hawkins contract, a key element in our capital investment programme.”
She added that the proceeds will initially be used to reduce net debt, repay the NZ$150m October 2024 bond maturity as well as a further NZ$100m of unhedged drawn facilities, and provide flexibility to fund Auckland Airport’s planned capital investment programme over the remaining years.
The airport had signed a contract with Hawkins Construction, worth about NZ$800 million, to manage and deliver the domestic terminal upgrade. The new domestic terminal was expected to cost NZ$2.2bn in total and due to be completed by 2029.
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