RNS Number:5202O
BAA PLC
11 August 2003

11 August 2003


                        BAA plc - Convertible Bond Issue


This press release is not an offer for sale of the Bonds of BAA plc in the
United States. The Bonds are not being registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United States or to
US persons except pursuant to an applicable exemption from such registration.
Any offering of the Bonds will be made only by means of an offering document
containing detailed information regarding BAA plc and its management, including
financial statements. Such an offering document will be made available through
BAA plc.


Stabilisation/FSA


Offering of GBP425 million 2.625 per cent Convertible Bonds due 2009


BAA plc ("BAA") announces that it has launched an issue (the "Issue") of GBP425
million 2.625 per cent Senior Unsecured Convertible Bonds due 19 August 2009
(the "Bonds") convertible into ordinary shares of BAA (the "Shares").


The Bonds will be issued at par and will bear a coupon of 2.625 per cent. per
annum. The initial conversion price will be 576p, representing a premium of 20.4
per cent. over the closing price of the Shares in London on Friday 8 August
2003. If not converted or previously redeemed the Bonds will be redeemed at par
on 19 August 2009. The net proceeds of the Issue will be used by BAA for general
corporate purposes.


BAA has also given notice today that all of the outstanding 4.875 per cent.
Convertible Bonds due 2004 of BAA ("the 2004 Bonds") will be redeemed at their
principal amount, together with interest accrued, on or about 19 September 2003.
It is expected that a Redemption Notice in respect of the 2004 Bonds will be
published in accordance with the Trust Deed constituting the 2004 Bonds on or
about 14 August 2003.


Cazenove is Financial Adviser and Authorised Adviser to BAA in relation to the
Issue. Citigroup is Lead Manager and sole Book-runner for the Issue.


Application will be made for the Bonds to be admitted to the Official List of
the UK Listing Authority and to the London Stock Exchange plc for the Bonds to
be admitted to trading on the London Stock Exchange's market for listed
securities.


Enquiries:


BAA plc - London

Investor Relations

Alison Livesley          Tel: 020 7932 6692


Media Relations

Caroline Corfield        Tel: 020 7932 6654


Cazenove                 Tel: 020 7588 2828

Financial Adviser to BAA plc

Duncan Hunter

James Douglas


Citigroup

Lead Manager and sole Bookrunner

Susan Lewis              Tel: 020 7986 1145

Darrell Uden             Tel: 020 7986 0410


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

IODEAKPFFSADEEE