The Manchester Airports Group (MAG) has secured a £300m bond in capital markets to support its development plans for a 22-year period.

The bond’s order book was more than three times oversubscribed at approximately £1bn, with an annual coupon of 2.875%.

MAG is expected to use the proceeds of the bond to fund the transformational capital investment programmes that are currently underway at both Manchester and London Stansted airports.

Work has already commenced on the £1bn Manchester Airport Transformation Programme (MANTP), which will enable the airport to handle a greater number of passengers in its terminals and make complete use of its current runway capacity.

“The success of the bond is a testament to the strong financial performance of the group over the past three years.”

In addition, London Stansted Airport is set to begin the first stage of an initiative to transform the existing terminal building into a dedicated departures facility next year, in addition to a new arrivals section.

The initial project will involve the development of new check-in spaces and seating areas in the terminal.

MAG chief financial officer Neil Thompson said: “The success of the bond is a testament to the strong financial performance of the group over the past three years, which has delivered over 40% earnings growth, and demonstrates the confidence of a wide number of UK and international blue-chip investors in MAG’s future growth strategy.

“Manchester and London Stansted airports both provide vital international connectivity for the UK with the group operating routes to over 280 destinations.

“Our plans for significant investment at Manchester and Stansted will not only improve the experience for passengers and airlines using our airports, but also provide the foundations to unlock their significant future growth potential.”