strong demand for syd paper

Sydney Airport has completed a $2.5 billion refinancing across European bond and Australian bank debt markets.
Chief executive Kerrie Mather described the package as a ‘‘landmark refinancing’’ and enabled the airport to meet all 2014 debt maturities, totalling $822 million, well before the fourth quarter due date.
About $1 billion was raised in European bond markets, while $1.5 billion came through Australian bank debt.
Ms Mather said both issuances were oversubscribed.
‘‘We proactively capitalised on the strong investor appetite for exposure to Sydney Airport’s stable and growing cash flow profile and favourable conditions in global credit markets,’’ Ms Mather said.
It was the first time the airport had used the European bond market after previous issuances in the US and Canada.
Ms Mather said the European bond was a ‘‘deep credit market’’ and has ‘‘created further funding flexibility for future debt raisings’’.
‘‘The maturity profile has been de-risked further by refinancing all existing bank debt facilities, which were due to mature over the period 2014 to 2017.’’
The refinancing will fund capital expenditure until 2016.


Read more: http://www.smh.com.au/business/sydney-airport-taps-europe-for-cash-20140506-37t3d.html#ixzz30uTLJtu9