FIIG Strategy - Heathrow Airport - New Issuance

Heathrow Airport's inaugural AUD issuance is expected to receive strong investor demand due to its investment grade rating and stable and predictable cash flow.s The bond offers reasonable value with trading margin of circa BBSW+1.40% and fits our theme of extending duration in Australian dollar denominated investment grade bonds. Nevertheless, we see better relative value elsewhere with these bonds also carrying additional interest rate risk.