SPAusNet – BT

SP AusNet prices bond at 160 bps

(SYDNEY) Australian energy firm SP AusNet, part owned by Singapore Power, has priced A$300 million (S$384.7 million) of 7.5-year notes at 160 basis points over swap to refinance debt, it said yesterday.

The offer, launched as a A$200 million size deal but capped at A$300 million, paid a slightly lower margin than initially expected at around 165 bps.

The issue completes SP AusNet’s refinancing requirement of A$960 million to 2011, Geoff Nicholson, SP AusNet’s chief financial officer said in a statement.

ANZ, Commonwealth Bank of Australia and Westpac Institutional Bank jointly led the issue, and sold the bonds in Australia and offshore.

This is the second only- bond issue this year from a non-financial borrower in Australia, and follows a sale by toll road operator Transurban earlier this week .

Bond issues from non- financial borrowers are rare in Australia, and investors are relishing the prospect that non-financial borrowers might issue bonds in a market dominated by bank issuers.

Only 3.5 per cent of Australian-dollar bond issuance last year came from non-financial firms, or corporates, according to ADCM data.

Property developer Mirvac Group Ltd is expected to price a five-year bond issue this week. — Reuters

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