Wednesday 6 March 2019 11:46 am

Heathrow issues €650m bond weeks before Brexit deadline

Heathrow Airport has placed a €650m (£558.9m) bond with only weeks to go before the UK is due to leave the European Union.

The 15-year bond was backed by current and new investors, which were mostly European, and reached an order book in excess of €2.8bn.

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The airport said the high demand for the bond shows investor confidence in Heathrow's expansion plans and resilience ahead of Brexit. 

The move drives forward Heathrow’s strategy to build strong positions in core markets and extend the duration of its debt portfolio ahead of the airport's third runway expansion, and the funds will be used on day-to-day corporate spending. 

Sally Ding, Heathrow director of treasury and corporate finance, said: “The overwhelming support received from investors 23 days before the Brexit deadline clearly signals Heathrow’s robustness and strong global investor support as we gear up for growth.

“We are extremely pleased to re-access the long-dated Euro market two years after our last issuance.

“The transaction delivers on our strategy of further diversification, longer duration and stronger liquidity.

“It also delivers on our commitment to repeat issuance in each active market and the ongoing support by global bond markets for Heathrow.”

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The London airport was given the go-ahead to proceed with its long-awaited third runway last year, however, it is facing a legal challenge from nearby local authorities. 

Heathrow will conduct a public consultation in June ahead of submitting a planning application next yet, with the runway anticipated to open in 2026.