BAA to raise £500m equity

BAA has announced a proposed injection of £500m into its London portfolio.

Some £200m of the new equity will come from shareholders and £300 million from BAA Airports Limited and FGP Topco Limited. According to a statement from the group, the funding will be used to “pay down debt, strengthen the group's medium-term financial ratios and facilitate its access to the capital markets.”

Of the £500m, £260m was paid to the group on Friday and the remaining £240m is expected to be injected in January 2010.