BAA today announces that it has successfully placed a 500 million bond, with a 2016 maturity and a fixed annual interest coupon of 4.125%. The company generated an initial order book of over 2 billion from over 200 financial institutions and was able to price inside initial price guidance at 205 basis points over mid-swaps. Fred Maroudas, BAA's Director of Treasury, said: "The success of this Euro-demoninated bond, which follows on from our well received sterling, index-linked and class B bonds and our recent £625 million Class B bank facility, further demonstrates BAA's ability to attract a wide range of investors to fund our long-term investment plans at Heathrow. We are particularly pleased to see a broad geographical spread of demand, with two thirds of orders coming from outside the UK. The strength of investor confidence in our financial position provides a strong platform for BAA to deliver better facilities and improve the service we offer passengers." BAA plans to use the proceeds of the bond issue to refinance part of its existing bank debt, lengthening the group's debt maturity profile.