In preparation of a possible no-deal Brexit, Heathrow executives have raised £1.6 billion from investors.
In order to “cope” with the UK leaving the EU, officials at the airport said it was necessary to build “financial resilience” ahead of March 2019.
An estimated £238 million was raised from a 12-year Canadian bond. £96 million was raised from a debut Australian dollar issue.
Europe’s busiest airport said it hopes the money will reassure passengers.
“We have taken an extremely responsible approach to both operational and financial planning,” said the airport in a statement.
“Extensive contingency plans have been developed, which will help to minimise any potential impact on passengers. [The debt-raising] ensures the airport has sufficient financial firepower to cope with a no-deal Brexit.”
“This extends our liquidity horizon until the end of 2020 and ensures the airport has sufficient financial firepower to cope with a no-deal Brexit and still meet its obligations – including progressing our expansion plans,” it added.
The news of the buffer came when Heathrow reported a 2.3% rise in revenues to £2.2 billion in the first nine months of the year.
Department of Transport (DfT) officials admitted earlier this week that airlines would not be able to fly in and out of UK if no agreement had been reached with the EU in the next five months.
“Where we are actually in our discussions around air services agreements: we have not been able to start those bilateral discussions or multilateral discussions yet with either member states or indeed with the Commission,” said Lucy Chadwick.
Regarding Eurostar trains, she added: “Although we have started rail bilateral discussions with our counterparts in France, Belgium and Holland, it’s at a very early stage.”
“Our confidence at the moment in the programme [of readiness for Brexit] is somewhat decreasing because of the dependence on those bilaterals and given where we are. That increasingly will become a cause for concern for us.”
