Plenary Group and FIIG Securities announced a US$35 million wholesale corporate bond issue underpinned by Plenary's interest in eight Australian PPP projects.
The Australian PPP projects include, among others, the Victorian Comprehensive Cancer Centre, the Melbourne Convention Centre, and Gold Coast Light Rail.
The 7-year amortising bond offers a fixed rate of 7.5% paid quarterly. FIIG Securities will act as Sole Lead Manager. The issue will take the total raised by FIIG Securities to US$550 million since September 2012.
John O'Rourke, Plenary Group Principal, stated:
This is an exciting opportunity to tap the local bond market for corporate capital and continue our strategy of co-investing alongside our alliance partners in Australia's largest infrastructure projects.
Plenary Bond Finance Unit Trust (PBF), a special-purpose vehicle created to issue the notes, will cover the interest and principal payments to noteholders from the dividends paid by the eight high quality Australian PPP projects. The notes have a minimum initial investment of US$50,000 and will be distributed to new and existing FIIG Securities clients who qualify as sophisticated or professional investors.
Plenary Group is recognised as Australia's leading independent sponsor, investor and operator of public infrastructure projects commonly known as Public-Private Partnerships. Since its inception in 2004, Plenary Group has closed 27 infrastructure projects worth $14 billion spanning a number of industry sectors.
FIIG Securities Limited, which is licensed by the Australian Securities and Investment Commission (ASIC), is Australia's largest specialist fixed-income broker. FIIG offers private investors access to Australia's widest range of domestic and international corporate bonds through its ground-breaking DirectBonds service. The firm has more than US$11 billion in term deposits and corporate bonds under advice in its short-term money market and custody business.