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Metlife injects $150m into Australia’s Transurban

The insurance firm’s investment subsidiary has provided the developer with long-term debt through a private placement in both Aussie and US dollars.

Australian toll road operator Transurban has received a long-term debt financing package from MetLife Investment Management.

The New York-listed insurance firm’s asset management business provided Transurban with A$174.2 million ($130 million; €122.7 million) in three tranches with maturities of 10, 15 and 18 years. An additional $20 million was provided in US dollars.

The financing is earmarked for Transurban Group’s subsidiary Transurban Queensland, which is the owner and operator of six toll roads, bridges and tunnels in Brisbane. Last week, Transurban Queensland saw the state government approve its A$512 million proposal to upgrade several motorways across Australia’s third-largest city.

Average daily traffic for the company’s assets in Brisbane increased 19.4 percent to 396,000 cars in the third quarter of this year.

“This private placement lends long-term debt in Australian dollars to a critical integrated road network in Australia,” said Scott Inglis, head of MIM’s private debt unit. “The asset has a well-established operating history, and it is essential to Brisbane’s transportation infrastructure.”

The investment from MIM is one of its first moves in the Australian market. Launched in 2012, the unit manages a portfolio of $57.7 billion, some $12.5 billion of which is in infrastructure debt.