Linklaters has advised Manchester Airports Group (MAG), a leading UK airport operator, on the update of its £5bn multicurrency programme and the issuance of £300m, 22-year bond with an annual coupon of 2.875%. MAG serves c. 56m passengers through its ownership and operation of Manchester Airport, London Stansted Airport, East Midlands Airport and Bournemouth Airport.

MAG will use the proceeds of the bond to fund the transformational capital investment programmes that MAG is undertaking at both Manchester Airport and London Stansted Airport. Work has already begun on delivering the Manchester Airport Transformation Programme, a £1bn programme of work which will allow the airport to serve more passengers in its terminals and make fuller use of its current runway capacity.

London Stansted Airport will commence the first stage of its works to transform the current terminal building into a dedicated departures building in 2018, in advance of a new arrivals building being built next door. The initial work will involve the creation of new check-in space and seating areas in the terminal.

    Neil Thompson, Chief Financial Officer for MAG, said:
    “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.”

    Reza Taylor, Linklaters Partner, added:
    “We were delighted to support the MAG team on this exciting transaction, which will serve as an important contribution to the future growth of MAG’s airports. Both Manchester and London Stansted airports provide vital international connectivity for the UK with the Group operating routes to over 280 destinations. 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.”

The transaction was led by Julian Davies, partner and Reza Taylor, partner, supported by Aditi Srivastava, managing associate, and Alyssa Wu, associate.