Auckland Airport finalizes bond rate, dividend plan, and regulatory stance

Auckland Airport has set the interest rate for its NZ$200,000,000 fixed-rate retail bond issue at 4.04% per annum, reflecting a margin of 0.85% over the base rate. The bonds, maturing on 8 April 2031, will be issued on 8 October 2025. This follows a successful bookbuild process that saw the entire offer allocated to participants, with no public pool. Additionally, the airport completed a NZ$100,000,000 wholesale floating rate note issue with a three-year term and a margin of 65 basis points over the base rate, which will refinance maturing debt and fund investment.

For its FY25 dividend, Auckland Airport announced a dividend reinvestment plan (DRP) strike price of NZD 7.6098 per share, inclusive of a 2.5% discount. The DRP shares will be issued on 3 October 2025. The foreign exchange rate for Australian investors receiving dividends in AUD is set at 0.8822. The total dividend payment per security is NZD 0.08235294, with NZD 0.07000000 as ordinary dividend and NZD 0.01235294 as supplementary dividend, both unfranked.

The Commerce Commission has rejected calls for a section 56G inquiry into airport regulation, confirming that the current regulatory regime is working effectively for consumers and investors. This decision provides ongoing regulatory certainty for Auckland Airport’s NZ$5.7 bn aeronautical infrastructure program, aimed at enhancing resilience and capacity.