Auckland International Airport confirmed today that it is offering up to $100 million of seven-year fixed rate bonds to New Zealand retail investors and institutional investors. This comes a week after lifting plans for capital expenditure, and as another debt issue nears maturity.

The offer will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as existing quoted debt securities. The notice required by the Financial Markets Conduct Regulations 2014 has been provided to NZX. The bonds are expected to be quoted on the NZX debt market.

The Auckland-based company will sell the unsecured, unsubordinated notes at an indicative margin of 0.95 to one percentage point plus the seven-year swap rate, though the final price will be set in a bookbuild, it said in a statement. NZ’s seven-year swap rate was recently at 3.27 per cent.

The A- rated bonds will be used for “general corporate purposes”.

Auckland Airport flagged the issue last week when it told shareholders it raised forecast capex in the current financial year to between $230 million and $260 million from a range of $190 million to $205 million, and about $148 million in 2015. Some $135 million of capex is earmarked for aeronautical projects to upgrade and expand its terminal and airfield capacity for passengers and airlines, up from the $100 million previously forecast.

The offer opens on November 2 and closes on November 9, and will only be available to clients of the joint lead managers Bank of NZ and Westpac Banking Corp, co-manager Deutsche Craigs and other approved financial intermediaries.

The bonds are expected to be quoted on the NZX debt market and are expected to be assigned a long term credit rating of A- by Standard and Poor’s.

The issue comes ahead of the maturity this week of Auckland Airport’s $100 million of listed bonds paying annual interest of 7.25 per cent.

The company’s shares rose 0.4 per cent to $5.28, and have gained 24 per cent this year.