Tuesday 26 May 2015 by Alen Golubovic Company updates

New DirectBond – Asciano Finance Pty Ltd

Asciano Finance Pty Ltd is now available as a DirectBond to wholesale investors, in minimum investment amounts of $10,000. The bond is one of the highest yielding Australian investment grade bonds available at the moment

Dock with shipping containers

We are pleased to launch the Asciano Finance Pty Ltd 5.25% senior unsecured fixed rate bond maturing in 19 May 2025 as a new Direct Bond. The bond has an investment grade credit rating is available to wholesale investors only, with a minimum investment parcel size of $10,000.

Asciano Finance Pty Ltd is the financing vehicle for Asciano Limited (‘Asciano’). Asciano is Australia’s leading provider of critical logistics services within infrastructure based supply chains. It is listed on the Australian Securities Exchange (ASX) and has a market capitalisation of about $6.5bn. It forms part of the ‘ASX50’ index making it one of the top 50 listed Australian companies by market capitalisation. The company has good diversification operating across a variety of industries, from coal and bulk commodities such as agriculture, to automotive, containerised goods and building materials.

Asciano has three core businesses:

  1. Pacific National which is Australia’s leading provider of national intermodal and bulk rail haulage services, and makes up about 60% of the company’s total revenue and about 70% of total EBIT
  2. Patrick Terminals and Logistics which is a national container terminal operator combined with an integrated landside logistics network, making up about 20% of the company’s total revenue and 20% of EBIT
  3. Patrick Bulk & Automotive Port Services which is a leading provider of bulk port and automotive processing services across over 40 sites in Australia and New Zealand, making up about 20% of total revenue and 10% of total EBIT

With an issue size of $350m, Asciano has issued the largest ten year corporate bond in the Australian market since 2007, making it somewhat of a landmark transaction. The company was initially hoping for a $200m issue size, and so the upsized $350m was an extremely positive result for the company and highlights the strong interest in this name.

The Asciano bond is indicatively offered to investors at a yield to maturity of 4.80%. Supply is good at present given this is new bond issue. However we expect availability to reduce over time. The bond is one of the highest yielding Australian investment grade corporate bonds available at the moment. For further details, please refer to the Asciano bond factsheet which is now available to download. 

Please speak with your FIIG representative if you are interested in investing in the Asciano Finance Pty Ltd bond.

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