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Plenary Group bond issue to fund public private partnerships

Published 05 June 2014

Plenary Group and FIIG Securities today announced a $35 million wholesale corporate bond issue underpinned by Plenary’s interest in eight Australian PPP projects including the Victorian Comprehensive Cancer Centre, the Melbourne Convention Centre, and Gold Coast Light Rail.  

The 7-year amortising bond offers a fixed rate of 7.50 per cent paid quarterly. FIIG Securities will act as Sole Lead Manager.

Plenary Group Principal, John O’Rourke said the bond issuance would allow investors access to a diverse range of investment grade public infrastructure projects with solid cash flow streams and will complement Plenary’s growth plans.

“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,” Mr O’Rourke said.

The issue will take the total raised by FIIG to $550 million since September 2012.  CEO Mark Paton said the Plenary issue, which follows a $100 million issue for Adani Ports last month, confirmed that corporates were queuing up to access this new pathway to the debt markets.

“Everything is coming together to drive the market to greater heights as corporates seek out the funding diversity and longer duration that bonds can offer and investors look for yields that are more realistic than the 2 per cent or so available on bank deposits.”

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 eight high quality Public-Private Partnership projects.

The projects are diversified by location, by Government counterparty (State and Commonwealth) and by sector, with projects spanning health, tourism, defence, justice and transport.

The Plenary Group issue is the tenth sole arranged issue for FIIG Securities, following successful note issues by Adani Ports ($100 million), CBL Corporation ($55 million), G8 Education (two issues of $50 million and $70 million), Payce Consolidated ($50 million), PMP Limited ($50 million), Cash Converters ($60 million), Mackay Sugar Limited ($50 million) and Silver Chef Limited ($30 million).

The notes have a minimum initial investment of $50,000 and will be distributed to new and existing FIIG Securities clients who qualify as sophisticated or professional investors.

Media Contact:

FIIG Securities: Duncan Macfarlane on +61 435 092 936

Plenary Group: Kelvyn Lavelle on +61 413 120 344

About Plenary Group

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 $14bn spanning a number of industry sectors.

Plenary Group operates in two markets, Asia Pacific and North America, with nine offices and over 140 employees. In Australia, Plenary Group has successfully closed 10 projects and was recently awarded the $550m Queensland Schools project. Plenary Group in Canada has closed 17 projects and was recently awarded the Waterloo Light Rail Project.

About FIIG Securities

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.  

FIIG has more than $11 billion in term deposits and corporate bonds under advice in its short-term money market and custody business. The company has offices in Sydney, Melbourne, Brisbane and Perth.

Kelvyn Lavelle

Head of Corporate Affairs
+61 3 8888 7708
+61 413 120 344
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