Heathrow bond issue

Not for release, publication or distribution in whole or in part, directly or indirectly, in or into the United States of America.

01 March 2018

Demand from Canadian investors soars for

Heathrow's C$400 million 10 year bond

Heathrow has today successfully placed a C$400 million Class A bond with a 2028 maturity and a fixed coupon of 3.40%.

The bond is the fourth bond issued by Heathrow in the Canadian market since 2012 and reaffirms Heathrow's commitment to be a repeat issuer and provide liquidity to investors in every market where we have established a presence.

Support from Canadian institutional investors was very strong, with demand close to C$1.0 billion. The bond priced at 115 basis points over Government of Canada bonds, the tight end of the price guidance. Proceeds will be used for general corporate purposes.

The transaction further strengthens Heathrow's liquidity horizon, now extended to February 2020.

Sally Ding, Heathrow's Assistant Treasurer, said:

"We are delighted with the level of ongoing investor interest and were pleased to see new institutions joining Heathrow's credit community. This very successful transaction reflects the continued confidence in our credit and is another signal that Heathrow is in a strong position to deliver expansion entirely through private finance.

"Heathrow is by far the largest wholly-privately financed airport in the world and continues to successfully raise debt globally across six currencies at competitive pricing from a well-established debt funding platform. In the last five years alone, Heathrow has raised £7 billion of debt financing while becoming more affordable to passengers and achieving record service levels, all underpinning the transformation of Heathrow into western Europe's best hub airport."

For investor enquiries please contact Christelle Lubin on +44 20 8745 0811

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States or in any jurisdiction in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended (the "Securities Act") except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act. There will be no public offer of the securities in the United States.

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