Dublin Airport in €400m bond sale to help fund new runway

Dublin Airport

The Dublin Airport Authority (DAA) has launched a €400m (£310m) bond sale as it reviews its finances to aid the €320m (£247m) construction of a new runway at Dublin Airport.

The DAA first signalled last month that it was looking at its financing options.

The airport’s parent company confirmed yesterday that as a result of a tender offer that was launched a week ago for its outstanding €549.6m (£426m) bond, some €259.4m (£201m) of notes had been offered up for sale by holders.

The DAA indicated it would accept all notes offered for sale.

It has been holding roadshows with investors recently in relation to the bond issue.

The existing 10-year Eurobond was issued in 2008 with an interest rate of 6.5872%. It was used to help finance the construction of Terminal 2 at the airport.

The DAA had previously accessed the bond market in 2001, with a €250m (£194m) issue. The new bond issue is likely to have a coupon of closer to 1.9%.

A spokesman for the DAA declined to comment on the bond sale yesterday.

The airport has become increasingly attractive to Northern Ireland travellers, with the most recent figures showing a 52% increase in passenger numbers during 2014 to 864,000.