BAA today announces that it has successfully placed a £700m Sterling bond, with a 2026 maturity and a fixed annual interest coupon of 6.75%. The company generated an initial order book of over £2bn and was able to price inside initial price guidance at 270bp over gilts. The bond issue follows the confirmation by S&P and Fitch of BAAs A- ratings and the return to a stable outlook for both ratings. Fred Maroudas, BAA's director of treasury, said: "Our successful return to the bond markets for the first time since 2006 shows very clearly the progress the company has made over the past year. The strong support shown by investors on what has been a difficult day in the financial markets is a testament to the operational performance and long-term resilience of BAA and its airports." BAA plans to use the proceeds of the bond issue to re-finance existing debt, lengthening the company's debt maturity profile and providing a strong platform from which to invest in airports.