BAA confirms �200m cash injection into Heathrow, Gatwick and Stansted Airports
BAA has confirmed that its three controlling shareholders have formally approved the �200 million injection of new equity into its London airports, including Stansted Airport in Essex.This cash, together with �40 million from FGP Topco Ltd and BAA Airpo
BAA has confirmed that its three controlling shareholders have formally approved the �200 million injection of new equity into its London airports, including Stansted Airport in Essex.
This cash, together with �40 million from FGP Topco Ltd and BAA Airports Ltd, is expected to be injected into the airports in January 2010. FGP Topco and BAA Airports have already provided �260 million to the London airports.
The injection will consist of �200 million of new equity from shareholders and �300 million from BAA Airports Ltd and FGP Topco Ltd, the ultimate holding company of BAA, which is jointly owned by BAA's three controlling shareholders. The funding will be used to pay down debt, strengthen the group's medium-term financial ratios and facilitate its access to the capital markets.
The �300 million equity injection from BAA Airports Ltd and FGP Topco Ltd has been approved by the relevant boards. The �200 million of new equity from shareholders requires the formal approval of BAA's three controlling shareholders
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The injection furthers BAA's strategy of developing a long-term platform to finance its rolling programme of investment to upgrade its London airport facilities and improve service to customers.
The move follows October's announcement of the Department for Transport's measures to strengthen the financial resilience of major airports, which removed key uncertainties for BAA and its creditors; the sale of Gatwick, the net proceeds of which will be used by BAA to pay down debt; and the encouraging improvement in recent passenger traffic figures, particularly at Heathrow.
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