Auckland Airport bond issue

Auckland International Airport Limited (AIAL) is considering making an offer of up to $200 million of seven and ten year fixed rate bonds (bonds) to the public. Only New Zealand wholesale investors and NZX market participants will be eligible to apply.

The bonds that AIAL proposes to offer will pay interest semi-annually, with a choice of seven and ten year terms to maturity.

The bonds will be unsecured, unsubordinated debt obligations, issued under a master trust deed, registered prospectus and investment statement.

It is intended that the prospectus will be registered at the end of March 2007 and that the offer will open soon after with an issue date in late April 2007.

The interest rates payable on each tranche of bonds will be set at the aggregate of a set margin and the relevant swap rate.

There will be no public pool. Members of the public (including AIAL retail investors) who wish to purchase bonds may indicate their interest to NZX market participants. Eligible applicants will be required to subscribe for bonds in their own name in a minimum amount of $100,000.

AIAL is seeking preliminary indications of interest for the bonds. Indications of interest from wholesale investors and NZX market participants should be directed to Bank of New Zealand. Contact details for Bank of New Zealand are given below.

No indication of interest will create an obligation or commitment of any kind. No money is currently being sought and no applications for bonds will be accepted or money received unless the subscriber has received an investment statement.

AIAL will use the proceeds of the intended offer to refinance the maturity of bonds from November 2006 of $75 million, the maturity of bonds due in July 2007 of $100 million and contribute $25 million towards the current capital expenditure programme.

ENDS

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