BAA to receive $835m in new funding

By Administrator |

BAA has announced that it is to receive a total of ?500m ($835m) in new funding to pay down debt, strengthen the group's medium-term financial ratios and facilitate its access to the capital markets.

The airports company said that the injection will consist of ?200m ($334m) of new equity from shareholders and ?300m from BAA Airports Limited and FGP Topco Limited, the ultimate holding company of BAA, which is jointly owned by BAA's three controlling shareholders.

Of the ?500m ($835m), ?260m ($434m) was injected into BAA (SP) Ltd yesterday. The remaining ?240m ($4001m) is expected to be injected in January 2010.

The equity injection from BAA Airports and FGP Topco has been approved by the relevant boards, while the ?200m ($334m) of new equity from shareholders requires the formal approval of BAA's three controlling shareholders.

In a statement, BAA said: ‘The injection furthers BAA's strategy of developing a long-term platform to finance its rolling programme of investment to upgrade its London airport facilities and improve service to customers.

‘The move follows October's announcement of the Department for Transport's measures to strengthen the financial resilience of major airports, which removed key uncertainties for BAA and its creditors; the sale of Gatwick, the net proceeds of which will be used by BAA to pay down debt; and the encouraging improvement in recent passenger traffic figures, particularly at Heathrow.’

BAA is controlled by three shareholders who include: Ferrovial with 55.87%; Canada's Caisse de Depot et Placement du Quebec with 26.48%; and the Government of Singapore Investment Corporation with 17.65%.


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