Praeco Pty Ltd AUD 15 August 2020 Senior Secured Indexed Annuity Bond
Praeco Pty Limited (Praeco) is the special purpose vehicle which was contracted under a public-private partnership (PPP) arrangement to build and maintain the Headquarters Joint Operations Command (HQJOC) for the Australian Department of Defence just outside of Canberra. Praeco is owned by IFM Infrastructure Funds (‘IFM’), an experienced Australian infrastructure investor. IFM has interests in other PPP assets, including Civic Nexus.
The project construction has been completed and the project is now in the low risk operational phase which will continue until 2036 at which time the assets will revert back to the Commonwealth Government. Revenues for the project come in the form of a monthly service payment from the Australian Commonwealth Government. This payment is partially fixed and partially indexed. The fixed portion covers the return on debt and equity capital and the indexed payment covers other costs including the provision of maintenance services.