Advanced Theory & Practice of Bonds

IBF Recognized Under FTS
1-2 December 2021

Two-day immersive course on bonds designed for private bankers and advisors. 90% funding* available to eligible company-sponsored candidates.

UK’s Heathrow Airport raised £350mn ($486mn) via the issue of 7Y Class B notes at a yield of 2.703%, UK Treasury (UKT) + 215bp, 30bp inside the initial guidance of UKT+245 area, through Heathrow Funding Ltd. The senior secured bonds carry a coupon of 2.625% and have expected rating of BBB-/BBB (S&P/Fitch), . The bonds received orders worth £1.1bn, 3.14x the issue size. The bookrunners for the deal include Barclays, HSBC (B&D) and Santander. Proceeds will be used for general corporate purposes. The issuance comes as the airport looks at improving its liquidity, which suffered due to restrictions on air travel. Last month, UK’s PM had extended the ban on non-essential international travel to and from England till at least May 17, which has only exasperated the pain suffered by airports, airlines and the leisure industry. The company has upcoming Class A debt redemptions of $1.7bn in 2021. The company’s director of Treasury and Corporate Finance said, “We are extremely pleased to return to the public Class B market after nearly 10 years and the funds raised further strengthen our liquidity position,”
Heathrow Finance Plc’s 4.625% 2029s and 4.375% 2027s were down 0.12 and 0.11 to trade at 101.23 and 101.49 respectively.
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