Transport group issues £400m bond to support funding plans

BIRMINGHAM-based public transport group National Express has issued a £400m bond which it says will be used for general funding purposes and to repay existing debt.

The issue of the bond comes just days after the group revealed it was pulling out of a potentially lucrative £1bn long-term contract to operate train services in Nuremburg in Germany.

The company cited interference from the existing operator for undue delays and to mounting costs associated with the contract as the reason for withdrawing.

The new bond £400m 2.5% bond is due to mature in November 2023 under the £1,000,000,000 Euro Medium Term Note Programme.   The bond is expected to be rated Baa3 by Moody’s and BBB- by Fitch.  The joint bookrunners for the issue are Bank of America Merrill Lynch, Barclays, HSBC and Santander.

Commenting on the issue, Matthew Ashley, Group Finance Director, said: “We are delighted by the success of this issue and by the strong support shown by bond investors in National Express Group.”