FIIG clients oversubscribe $100 million bond issue

Fixed income specialist FIIG Securities is pleased to announce the oversubscription of its largest ever bond origination, a $100 million wholesale corporate bond issue for Adani Abbott Point Terminal Pty Limited (AAPT).

Once issued, the 6-year bond, which is rated investment grade by Standard & Poor’s and Moody’s, will offer a fixed rate of interest of 6.10 per cent, paid semi-annually.

It will take the total raised by FIIG as sole lead arranger to more than $500 million since September 2012 of which more than $400 million was raised in the last year alone.

CEO Mark Paton said the AAPT issue had closed well oversubscribed following strong interest from its wholesale clientele including institutions, private investors and SMSFs which proved that this new pathway to the debt markets was open to corporates of all kinds.

“FIIG’s investors have been seeking longer tenor positions from rated issuers as part of their demand for a diversified yield portfolio and this issue offers that,” Mr Paton said.

“The AAPT issue proves the breadth of the distribution base that FIIG has developed and the appetite of private client investors and institutions for longer terms from good quality issuers.”

“This bond is the first of a number of long-tenor mandates FIIG will bring to the market in addition to our growing unrated issuance program which has included a range of quality mid-cap corporates.”

The AAPT Notes will have a maturity of six years, compared to the typical bank funding term of 2-3 years.

AAPT is one of  Adani Group’s interests in Australia. The company owns the Abbot Point coal Terminal at the northern end of the Galilee and Bowen coal basins. The Terminal is a strategically important asset for Queensland and Australia with an integrated logistics chain capable of handling 50 million tonnes of coal per annum.

The AAPT issue is the ninth sole arranged issue for FIIG Securities, following successful note issues by CBL Corporation ($55 million), G8 Education (two issues of $50 million and $70 million), Payce Consolidated ($50 million), PMP Limited ($50 million), Cash Converters ($60 million), Mackay Sugar Limited ($50 million) and Silver Chef Limited ($30 million).

The notes have a minimum initial investment of $50,000 and will be distributed to new and existing FIIG Securities clients who qualify as sophisticated or professional investors.