TransGrid the latest to tap the Australian bond market

The 10-year bond will have a 2.5 per cent coupon.

NSW electricity transmission company TransGrid is the latest to tap the Australian bond market.

The company that was privatised by the state government in 2015 and sold to a consortium that included Spark Infrastructure, Canada’s CDPQ and the Utilities Trust of Australia is looking to raise $600m at a margin of 177 basis points above the Bank Bill Swap Rate.

The 10-year bond will have a 2.5 per cent coupon.

It comes after the NSW electricity distribution company Ausgrid in July tapped the bond market with assistance from banks MUFG, NAB and UBS.

Ausgrid had $1.4bn worth of bank debt that was due to expire next year and investors were offered a yield of about 2 per cent.

That raise happened after Ausgrid, owned by the NSW government, AustralianSuper and IFM, tapped the bond market two years ago to secure $1.2bn.

The state government sold a 50.4 per cent stake of Ausgrid to IFM and AustralianSuper in October 2016 for $16.189bn to help pay for infrastructure projects.

The Australian bond market is growing increasingly activie amid the global COVID-19 pandemic as companies look to shore up their balance sheets.

Charter Hall announced on Wednesday that the Charter Hall Exchange Investment Trust is raising $300m through the issue of ten-year Medium Term Notes that will mature in September 2030.

The vehicle is half owned by the listed Charter Hall Long Wale REIT and owns a 49 per cent interest in The Exchange Trust, which owns the portfolio of 36 telecommunication exhcange properties, leased to Telstra.

Those notes have a fixed coupon of 2.32 per cent, representing a spread of 1.55 per cent over the relevant swap rate.

The issuance is due to settle on 25 September.

CBA is the sole lead manager on the transaction and will enable the vehicle to pay down its debt.