BAA Limited, an airport company owned by Grupo Ferrovial, announced that it has successfully placed a GBP700 million ($1.14 billion)bond, with a 2026 maturity and a fixed annual interest coupon of 6.75%.

BAA's 700 million pound, A-rated deal, which launched last Friday, is the first jumbo whole business securitization (WBS) since the onset of the credit crunch.

The company said it generated an initial order book of over GBP2 billion and was able to price inside initial price guidance at 270 basis points over gilts.

The bond issue follows the confirmation by Standard and Poor’s and Fitch Ratings of BAA's ‘A-‘ ratings and the return to a stable outlook for the ratings.

BAA plans to use the proceeds of the bond issue to re-finance existing debt, lengthening the company's debt maturity profile and providing a strong platform from which to invest in airports.

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