MAG secures £360m in UK bond market.

Manchester Airports Group (MAG) has successfully raised £360m in the UK capital markets through the issuance of an 18-year bond, at a rate of 6.125%.

 The bond has been supported by almost all the key blue-chip UK institutional investors and demonstrates significant confidence in MAG’s recovery and its future prospects.

 MAG has disclosed that the order book for the bond was four times oversubscribed, totalling c.£1.4bn at its peak. The timing of the new bond is driven by the MAG’s existing £360m bond, which is due to mature in April 2024.

 MAG is the largest UK airports group and made a strong recovery from the Covid-19 pandemic in the last year.

 The Group is currently delivering a major £1.3bn transformation programme at Manchester Airport, the final £440m phase of which began in January and is due for completion in 2025. MAG is also consulting on plans to expand its terminal building at London Stansted Airport to accommodate projected growth in passenger numbers over the coming years. East Midlands Airport is home to the largest dedicated airfreight operation in the country and is the only inland UK freeport site.

 MAG mandated Barclays as Arranger and Active Bookrunner on the transaction, alongside BNP Paribas and SMBC. CIBC and NAB also acted as Passive Bookrunners. Linklaters acted for MAG, with Allen & Overy acting for the bookrunners.

 Jan Bramall, Chief Financial Officer at MAG said: “The success of this bond is a testament to the strength of MAG’s recovery following the Covid-19 pandemic.

“We are pleased with the support and confidence that UK investors continue to show in MAG’s investment and long-term growth plans.”