SINGAPORE: Aurizon announced it has successfully priced another issuance under its Aurizon Network Pty Ltd (Aurizon Network) A$ Debt Issuance Program.
The A$500 million 10-year notes will be issued at a fixed coupon of 2.9% per annum, pricing at 210 basis points over the 10-year swap rate. Settlement of the issuance is expected to take place on 2 September 2020.
The Notes will rank equally with Aurizon Network’s existing debt facilities and will mature in September 2030.
The Notes are expected to be rated Baa1 by Moody’s and BBB+ by Standard & Poor’s, in line with Aurizon Network’s existing credit ratings.
The proceeds from the Notes will be used to repay existing bank debt facilities and ultimately the A$ Medium Term Note (AMTN) maturing in October 2020.
Aurizon’s Chief Financial Officer and Group Executive Strategy, George Lippiatt said, “This issuance represents a successful return to the domestic bond market and marks another step in fulfilling our strategic objectives to diversify funding sources and lengthen our debt maturity profile. We are very pleased with the strong support received from debt investors for Aurizon Network, particularly for longer tenors.”