The Airport Authority for Sydney, Australia is looking to raise funding and will likely turn to the 144A Regulation S market, sources said.

The deal is expected to take place in September, one source from the sell side said. Private Placement Letter was unable to get confirmation on an agent in this transaction.

Sydney Airport has a multi-billion dollar cash need over the next few years, said another source. The first source estimated that the 144A Reg S deal will total $750 million or more.

Airport issues have been popular on the private placement market this year, starting with Copenhagen Airport’s private bond issue in May. The issuer raised $280 million via RBS Securities, in two tranches of 275  basis points above Treasurys and one tranche of 220 basis points above Gilts.

The Bahamian Airport Authority was quick on its heels with a deal for Nassau via Citigroup for $165 million, which was done in a single tranche for a 7% coupon and a 15-year average, 23-year final life maturity. Both airports were rated 'BBB-', with Nassau Airport, which was mainly a project financing deal, viewed less favorably, according to sources.

Meanwhile, Melbourne Airport is looking to launch a deal on the U.S. private bond market with National Bank of Australia and Commonwealth Bank of Australia as its agents, several source said.

Other airports Down Under seem tempted by U.S. private bonds as well. Brisbane Airport is contemplating a private placement deal later this year, sources said.

It will likely wait until Melbourne completes its deal before making a move. Adelaide Airport is also considering a private bond issue but this will likely be a 2011 event, sources say.

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