DUBLIN AIRPORT Authority (DAA) yesterday said it had secured €600 million in new funding through the issue of eurobonds that will be listed on the Irish Stock Exchange.
The money will be used to help the DAA fund its €2 billion investment programme at Dublin Airport, which will include the delivery of the Terminal 2 passenger facility in 2010.
DAA said the 10-year bonds will carry a coupon rate of 6.5872 per cent.
The fundraising comes at a time when money is in short supply on global markets due to the credit crunch and the DAA said it was pleased to get the fundraising away. "The bond issue highlights the broad investor support for the group across Europe," said Ray Gray, director of finance at DAA.
DAA last accessed the bond market in 2001 when it raised €250 million.
The airport manager said the latest issue of bonds was oversubscribed, with investor demand spread across more than 10 European countries.
Barclays Capital, BNP Paribas and Davy acted as joint lead managers for the issue and DAA was advised by Rothschild.
Wayne Hiley of Barclays Capital said DAA had secured the funding at an "historically attractive coupon".
"Many corporate borrowers have been unable to access the 10-year part of the market in recent months as bond investors focus on shorter maturities," Mr Hiley added.
This was just the third 10-year corporate transaction in the eurobond market since the start of May - France Telecom and Siemens were the others.
The financing was arranged by DAA Finance plc, a subsidiary of the airport manager.
