Infratil to raise $100m in bonds

Infrastructure investor Infratil said today it plans to raise $100 million through the issue of two bonds.

Infratil executive Tim Brown said the company would use the proceeds to fund $50 million in bonds maturing in November, and to repay banks for the purchase of Kent International Airport in Britain.

A November 2012 maturity will pay 7.75 per cent and a February 2020 maturity will pay 8.5 per cent per annum. Opening today, a panel of dealers is handling the issue.

Infratil said last month it had bought the UK airport from administrators for around £18 million ($46 million).

Infratil is the majority owner of Wellington International Airport and also owns Glasgow Prestwick International Airport in Scotland.

Plans to buy and develop Luebeck Airport near Hamburg, Germany, for $77 million are on hold after a court ruling prevented development work.

Kent International is about 110km east of London near Ramsgate in Kent, and has no existing services.

Infratil chairman David Newman said last month £9 million in capital expenditure would be needed during the next three years to return the airport to profitable operation.

Shares in Infratil last traded up a cent at $3.86, against a year high of $4.15 set last month.

- NZPA