Wednesday 29 June 2016 by Alen Golubovic Company updates

Plenary completes VCCC project: Credit positive

All PPP projects under the Plenary bond are now in the operational phase


Plenary has just received notification of commercial acceptance for the Victorian Comprehensive Cancer Centre (VCCC) project, effective from 14 June 2016. This is a significant milestone as it means the hospital is now ready for operations, and as a result can receive availability payments from the Victorian state government. The project has an operating term of 25 years (to 2041), which is well in excess of the bond maturity in 2021.

The news is credit positive as it means all of the projects which form part of the Plenary bond cash flow are now in the operational phase. Distributions from the VCCC project are now expected to flow through to Plenary and provide additional interest coverage on the bonds. Completion of VCCC also increases the value of Plenary’s share in the project, which forms part of the bond’s security.

The Plenary Bond Finance Unit Trust 7.50% AUD bond maturing in June 2021 is currently offered at an indicative yield to worst (based on a $103 call price in June 2018) of 5.54%. Bond principal is progressively paid down to 50% of face value at maturity, with the first amortisation commencing in October 2017.

Please contact your FIIG representative for further details on the Plenary Bond Finance Unit Trust AUD bond. Available to retail and wholesale investors only with a minimum face value of AUD10,000. Pricing is indicative only and subject to change.