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Auckland International Airport is considering a public offering of bonds to raise up to $130 million.
Amidst a global credit crunch and a less than stellar local economy, the company yesterday said it was proposing an issue of $80 million in direct, unsecured, unsubordinated debt obligations, with an option to accept $50 million oversubscriptions.
The bonds will have a maturity date of November 15, 2016.
The company said it was issuing bonds to raise money to fund "general business activities", but could not say any more, citing legal obligations until the prospectus is registered.
Over the past four years, it has spent more than $500 million in capital expenditure, including $143 million during the past financial year.
But the company has signalled that capital expenditure would slow significantly to between $75 million and $83 million this year.
It has already delayed making a decision to expand its arrivals processing facilities, which was due for completion by the 2011 Rugby World Cup, and was reassessing developing a hotel on a 180ha business park.
Full details of the offer were expected to be released later this month.
The fixed rate of interest will be announced before the issue opens, expected to be by the end of the month.
Auckland Airport said the offer could remain available until March 31
