February 28, 2012 / 11:34 PM / in 6 years

Australia's Transurban issues C$ bonds

SYDNEY (Reuters) - Australian toll road operator Transurban (TCL.AX) has raised C$250 million ($251 million) of maple bonds, Canadian-dollar-denominated bonds sold in Canada, which it said was the largest such issue by an Australian non-financial issuer.

Maple bonds are a relatively new instrument for Australian borrowers, and are particularly uncommon for non-financial, or corporate, institutions.

The offer by the toll operator’s financing arm, Transurban Finance Company, will pay a coupon of 3.368 percent to yield 170 basis points over the interpolated June 2018 and June 2019 Canadian government bond curve, joint lead managers RBC Capital Markets and Scotiabank said in a statement on Wednesday.

The senior secured notes were priced at par and will mature on March 6, 2019 though they can be called from December 2018, according to Standard and Poor’s. Settlement is on March 6.

The offer was documented under Transurban’s U.S. dollar European medium-term-note program and is rated A- by both S&P and Fitch and Baa1 by Moody’s.

The funds will help pay debt and fund capital expenditure.

Proceeds will be swapped back into Australian dollars at a rate of 6.657 percent fixed for the life of the notes, according to the company.

The firm’s next debt maturity is in April 2013, it added.

Corporate bond issues are relatively rare in Australia. They make up less than 7 percent of the A$16 billion issued so far this year in the local market, Reuters data showed. ($1 = 0.9958 Canadian dollars)

Reporting by Cecile Lefort; Editing by John Mair

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