AGUK guarantees Heathrow bonds
A subsidiary of Bermudian-based Assured Guaranty has guaranteed principal and interest payments on £140 million of primary wrapped bonds issued by Heathrow Airport, Britain’s largest airport.
Assured Guaranty UK Limited said the wrapped bonds are long dated and issued by Heathrow Funding Limited, the airport’s issuer vehicle, via its multicurrency bond programme.
There are two fixed rate tranches of wrapped bonds, a £70 million tranche due 2058 and a £70 million tranche due 2059.
The bonds have been placed in the UK institutional investor market.
As a result of the financial guarantee provided by AGUK, the company said, the bonds are rated AA by S&P Global Ratings.
Suparna Dar, managing director, AGUK, said: "We are delighted to have worked alongside the Heathrow Airport team supporting the airport’s long term funding requirements by providing Assured Guaranty’s financial guarantee.
“The closing of this transaction represents our first primary market transaction in the UK Airports sector, where we have been very active in the secondary market in recent years.
“We guarantee a number of transactions for issuers in the airports sector globally, and believe our wrap provides a cost-effective solution to facilitate long-term financing for major airport borrowers.”
AGUK said it guarantees timely payment of scheduled principal and interest throughout the life of the bonds, in accordance with the terms of its financial guarantee.