Redevelopment at Dublin airport, which includes the delivery of Terminal 2, will be funded through the issuing of a €600 million bond by Dublin Airport Authority (DAA).

The authority will release the euro bond to subsidise ambitious infrastructural plans at the airport.

Co-ordinated by DAA Finance, the authority's financing department, the €600 million 10 year bond will be listed on the Dublin Stock Exchange.

The funds will provide a programme of capital investment at the airport, which includes the construction of a €609m Terminal 2, a new passenger terminal.

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Investors, from more than ten countries, have expressed interest in the bond. According to DAA, these potential investors include Barclays Capital, BNP Paribas and J&E Davy.

The bond is the third 10-year corporate transaction in the Euro bond market since the start of May.

DAA's Director-Finance Ray Gray said: "DAA's ability to raise significant long-term financing at attractive rates in volatile capital market conditions reflects its strong balance sheet and excellent credit profile. The bond issue highlights the broad investor support for the group across Europe."

Wayne Hiley, from Barclays Capital, added: "Many corporate borrowers have been unable to access the 10 year part of the market in recent months, as bond investors focus on shorter maturities. In very challenging market conditions DAA has secured 10 year money at an historically attractive coupon."

The DAA last accessed the bond market in 2001 for €250m.

(PR/JM)