Issue of Debt

12 October 2020

Heathrow returns to global debt capital markets

COVID-19 continues to significantly disrupt global aviation. It is expected that the recovery will take several years to materialise. With uncertainties ahead, Heathrow has taken the prudent and proactive step to reinforce the airport's liquidity position over the last week. The airport accessed the Euro, Sterling and Canadian Dollar bond markets raising £1.4bn equivalent via 3 transactions.

Heathrow placed a 

· €750 million Class A bond maturing in 2025 with a fixed coupon of 1.50%

· £450 million Class A bond maturing in 2029 with a fixed coupon of 2.75% 

· C$500 million Class A bond maturing in 2031 with a fixed coupon of 3.661%

Since the start of this crisis, Heathrow has taken decisive action to protect the business - including cutting operating costs by at least £300 million and reducing capital expenditure by £650 million. The effects of COVID-19 on the business will not be short-lived, and given the ongoing nature of the crisis, Heathrow is prepared to take further action to cut costs in order to protect the long-term health of the airport. 

The funds will be used for general corporate purposes.

For investor enquiries please contact Christelle Lubin on +44 7764 805 761

For media enquiries please contact Weston Macklem on +44 7525 825 516