Sydney Airport Said to Plan Sale of $500 Million of Bonds Maturing in 2021

Sydney Airport Finance Co. Pty Ltd., the finance arm of Australia’s largest airport, plans to sell $500 million of bonds maturing in 2021, according to a person familiar with the transaction.

Bank of America Merrill Lynch, JPMorgan Chase & Co. and Royal Bank of Scotland Group Plc are managing the sale of notes, which may price later this week, the person said, asking not to be named as the matter is private.

The bonds will carry conditions that investors would receive extra interest if the credit rating is cut, the person said.

Sydney Airport is majority-owned by MAp Group, an Australian-listed company that also owns stakes in airports in Copenhagen and Brussels, according to its website. Officials from the airport met with debt investors in Hong Kong, Singapore and the U.S. earlier this month, another person said Sept. 17.

Sydney Airport Finance Co. has about A$280 million ($271 million) of bonds due next year, according to data compiled by Bloomberg. It sold A$175 million of five-year notes in July as part of a buyback and exchange transaction, the data show.

To contact the reporter on this story: Sarah McDonald in Sydney at smcdonald23@bloomberg.net.

To contact the editor responsible for this story: Will McSheehy at wmcsheehy@bloomberg.net.

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