Plenary Bond Finance Unit Trust AUD 6.50% 17-May-24 Fixed Rate Amortising Notes Factsheet
Plenary Bond Co Pty Ltd (as trustee for the Plenary Bond Finance Unit Trust; the Issuer) is a financing vehicle for Plenary Group Holdings Pty Ltd (Plenary), a leading independent long-term investor, developer and manager of public infrastructure projects in Australia and North America. Founded in 2004, the group has participated in 44 projects with an aggregated total capital cost in excess of AUD32bn.
In a typical project, Plenary, generally alongside two or three other long-term investors, will be granted a long-term concession by a government entity (Federal or State) for the construction, financing and operation of a public infrastructure. Plenary and its co-investors will subscribe to the equity and the project will raise senior secured external debt (generally in the proportion of about 80-90% debt, 10-20% equity). Repayment of the project level debt and equity distribution are usually funded by regular contracted payments from the government entity, starting typically upon completion of the construction.
The cash flows supporting payment of interest and principal of the notes are generated by equity distributions that Plenary receives from nine projects (Casey Hospital, South Australia Police Stations, Melbourne Convention Centre, LEAP 1 & LEAP 2 for the Department of Defence, AgriBio Centre, Gold Coast Light Rail, Victorian Comprehensive Cancer Centre and Queensland Schools). Eight of those projects have achieved construction completion and have been in operations for at least two years. The last project (Queensland Schools) was about 80% complete at the time of the notes issuance (generating a corresponding proportion of total forecast revenue), with the remaining works scheduled for completion in the coming months.
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