cpi and tolls

after reading the PDS i note that the tolls will be linked to CPI.

so if the RBA expects to have elevated CPI over the next 2 yrs then this should be good news to CEU holders as the tolls will be higher. given that CEU will probably be able to source debt from overseas a lot cheaper than they can here surely the asset must be worth more. i am also quite sure CEU could hedge any currency exposure from borrowing off shore.

i based this on the expectation that when the debt maturities come up for renewal in 4 yrs the credit issues should have corrected themselves and over this period the interest rates will be hedged (no increases).

all this is good news for CEU holders as once the road is up and running the tolls should provide excellent cash flows. the market is probably also discounting the forcast traffic numbers so i can't wait until the road is open and the price starts to trade where it should be, ie $2+