Posted on: 13 November 2017 by Chloe Greenbank
The airport group MAG, which owns and operates four of the UK’s regional airports – Manchester, London Stansted, East Midlands and Bournemouth – has secured a £300 million bond. The group issued the 22-year bond, which was oversubscribed at around £1 billion.
“The success of the bond is a testament to the strong financial performance of the group over the past three years, which has delivered over 40% earnings growth, and demonstrates the confidence of a wide number of UK and international blue-chip investors in MAG’s future growth strategy,” said Neil Thompson CFO for MAG.
With over 55 million passengers flying through its airports every year, MAG also has over £600 million of investment property assets across its airports, and has a 50% investment in the £1 billionn Airport City development at Manchester Airport.
The group’s ownership comprises a blend of public and private shareholders, including Manchester City Council, IFM Investors and Greater Manchester local authorities. The proceeds of the bond will be used to fund the transformational investments that are being undertaken at Manchester and London Stansted airports.
Manchester Airport’s £1 billion transformation programme, which has been dubbed the biggest single constructive project ever to take place in Greater Manchester, will allow the airport to make more use of its current runway capacity as well as serve more passengers in its terminals.
Meanwhile at London’s Stansted Airport, works to transform the current terminal building into a dedicated departures building will begin in 2018. To accommodate a new arrivals building adjacent to the departures, initial work will involve creating a new check-in space and seating areas in the terminal.
Reflecting on how both Manchester and Stansted airports serve as vital regional hubs providing international connectivity for the UK, Thompson said “our plans for significant investment at Manchester and Stansted will not only improve the experience for passengers and airlines using our airports but also provide the foundations to unlock their significant future growth potential.”