Auckland International Airport (OTCPK:AUKNY) (OTCPK:ACKDF) on Monday said it plans to raise as much as 1.4 billion New Zealand dollars (US$862 million) to help modernize its facilities.

The airport also signed a contract with construction company Hawkins, a unit of Australian infrastructure company Downer Group, valued at about NZ$800 million to build a new domestic jet terminal.

The fundraising includes an underwritten placement of new shares to raise as much NZ$1.2 billion and a non-underwritten retail offer to raise up to NZ$200 million. New shares will be issued at NZ$6.95 each, a 7% discount to the company's closing stock price on Friday.

Auckland Airport (OTCPK:AUKNY) (OTCPK:ACKDF) is serves as the global gateway to New Zealand, which is seeing a rebound in passenger numbers after its strict pandemic lockdowns. Traffic still hasn't risen to prepandemic levels, which is partly blamed on the capacity constraints of airlines.

In a separate announcement, the airport separately said on Monday that passenger movements in August totaled 1.44 million, or at 87% of levels before the pandemic.

Hawkins' work on the airport is a part of a planned NZ$2.2 billion project that includes an airfield, baggage systems and other facilities.

Some of the proceeds its fundraising will be applied toward repaying a NZ$150 million corporate bond due to mature in October and another NZ$100 million of debt already drawn down, Chief Executive Carrie Hurihanganui said.