Transurban refinances $510m for M5 road

A Sydney toll road refinancing has taken Transurban’s total refinancing this year to €1.5bn. Six banks provided debt.

Australian toll road operator Transurban said Wednesday that subsidiary Interlink Roads has successfully refinanced $510 million of non-recourse project debt for Sydney’s M5 South West Motorway.

AMP Capital Investors, Australia and New Zealand Banking Group, Bank of Tokyo Mitsubishi, Calyon Australia, Commonwealth Bank and Westpac Banking are providing a $510 million debt facility maturing in three year’s time. Transurban CFO Tom Honan said the toll road operator had managed to refinance about $1.5 billion of debt in 2009, highlighting the strength of the operator’s assets and its strong banking relationships.

The M5 refinancing also benefited from improved market conditions, with Honan pointing out that the deal was 35 basis points cheaper when compared to the three-year tranches refinanced earlier this year for the M2 and M1 roads.