Auckland Airport bond issue opens

Investors are being offered a stake in the country's main international gateway.

Auckland International Airport Ltd's retail bond issue programme opened today.

The airport is making a public offer of $80 million of bonds with an option to accept $50 million oversubscriptions. The interest rate initially being offered for the full eight year term of the bonds is 8.0 per cent.

In a statement, Auckland Airport said it is is issuing bonds to raise money to fund the "general business activities" of the company.

The airport, the centre of a much-publicised take-over bid during the past year, is currently undergoing a massive refurbishment programme in both its domestic and international terminals and surrounding property.

First NZ Capital has been appointed lead manager for the bonds issue.

- NZHERALD STAFF