Assured Guaranty Wraps £140 million Fixed Rate Public Bond Issue for Heathrow Airport

Assured Guaranty UK Limited (AGUK)* announced that it has guaranteed principal and interest payments on £140 million of primary wrapped bonds issued by Heathrow Airport, the UK’s largest airport.

The wrapped bonds are long dated and issued by Heathrow Funding Limited, the airport’s issuer vehicle, via its multicurrency bond programme. There are two fixed rate tranches of wrapped bonds, a £70 million tranche due 2058 and a £70 million tranche due 2059.

The bonds have been placed in the UK institutional investor market. As a result of the financial guarantee provided by AGUK, the bonds are rated AA by S&P Global Ratings.

Suparna Dar, Managing Director, AGUK, commented:

"We are delighted to have worked alongside the Heathrow Airport team supporting the airport’s long term funding requirements by providing Assured Guaranty’s financial guarantee.

The closing of this transaction represents our first primary market transaction in the UK Airports sector, where we have been very active in the secondary market in recent years.

We guarantee a number of transactions for issuers in the airports sector globally, and believe our wrap provides a cost-effective solution to facilitate long-term financing for major airport borrowers.”

AGUK guarantees timely payment of scheduled principal and interest throughout the life of the bonds, in accordance with the terms of its financial guarantee.

Assured Guaranty’s legal adviser on the transaction was Allen & Overy LLP. Heathrow Airport was advised by Freshfields Bruckhaus Deringer LLP.

IMPORTANT NOTICE

All of the securities have been sold, and this announcement is for information purposes only. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold or transferred, directly or indirectly, in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States.