StormHarbour, the leading independent global markets and financial advisory firm, today announces it acted as Arranger on the successful placement of £200 million in inflation-linked bonds (the "issue") for Heathrow Funding Limited ("Heathrow" or the "Issuer").
The issue forms part of Heathrow's financing programme and is one of the largest ever single investor inflation-lined private placements entered into by a corporate in the sterling market.
StormHarbour was able to combine its specialist structured credit expertise in the infrastructure sector and distribution capabilities, to identify and introduce a new strategic real money investor to Heathrow.
The three tranche issue was tailor-made to suit the investor’s maturity profile and risk appetite, with Heathrow achieving competitive pricing compared with existing benchmark and target levels, pricing at reference Gilt + 131bp across the three tranches.
The key terms of the bonds are as follows:
- Tranche 1, £75m, matures on 28 March 2032 with a fixed annual coupon of 1.366%
- Tranche 2, £50m, matures on 28 January 2039 with a fixed coupon of 1.382%
- Tranche 3, £75m, matures on 28 January 2049 with a fixed coupon of 1.372%
Originated by StormHarbour’s Spanish team, led by Principal and Managing Director Gonzalo Chocano, the transaction follows StormHarbour’s growing presence in Iberia, where it recently acted as the Sole Arranger and Lead Manager for EDP - Energias de Portugal - on its successful €450 million tariff deficit securitisation, the largest public securitisation in Portugal since the financial crisis.
Patrick Swiderski, Managing Director at StormHarbour, commented: 'Inflation-linked funding is a natural fit with Heathrow's business model so we are delighted to see a substantial new investor commit this attractive long-term financing to the business. This funding lenghtens even further Heathrow's debt maturity profile and underlines financial markets' continuing support for our business. '
Andrew Efiong, Director of Treasury at Heathrow, added: "Inflation-linked funding is a natural fit with Heathrow’s business model so we are delighted to see a substantial new investor commit this attractive long-term financing to the business. This funding lengthens even further Heathrow’s debt maturity profile and underlines financial markets’ continuing support for our business."
StormHarbour’s unique model continues to benefit from the shifting financial services landscape in Europe, particularly in sectors vacated by full service banks and the transaction further underlines the Group’s commitment to the region and growing infrastructure capability.