360 Capital offer takes FIIG past $600 million
Fixed income specialist FIIG Securities has completed its largest mid-market corporate bond issue for ASX-listed 360 Capital Group, taking the total number of bond issues sole led by FIIG in the last two years to 11 with a total value of $630 million. The latest issue for 360 Capital Group was targeted to raise $50 million, with oversubscriptions resulting in $75 million of five-year unsecured notes being closed on Friday, offering a fixed rate of 6.9 per cent per annum. FIIG CEO Mark Paton said the success of recent issues and the large number of enquiries being received from potential issuers reflected the maturity of the market. “Two years ago there were limited fundraising alternatives for mid-cap, unrated Australian corporates,” Mr Paton said. “With 11 issues now under our belt there is clear evidence the market is well established in Australia. We have been able to demonstrate that there is strong and ongoing demand from both issuers and investors.” Mr Paton said mid-market corporates had accepted the important role of bonds in a diversified portfolio of funding. In the last 24 months, FIIG has successfully arranged on a sole basis 11 unrated bond issues totaling $630 million. These include fixed and floating rate, and secured and unsecured notes for a diverse range of companies including Coffey International, Plenary Group, CBL Corporation, G8 Education, PMP Limited, Cash Converters, Mackay Sugar Limited and Silver Chef. “We continue to receive strong interest from a variety of mid-cap corporates looking to diversify their funding and access tenors of 5 to 7 years in amounts of up to $100m,” he said. “Our track record of issuing over $600 million in unrated bonds is evidence of the scope of the distribution base we have developed and the continued demand from wholesale investors for longer tenor unrated bonds,” he said. The company expects to pass $1 billion in unrated issues over the next 12 months. Mr Paton said the 360 Capital Group issue was a great example of the growing demand from investors for mid-market issues with commitments significantly exceeding the target for the issue. The 360 Capital Group Notes will have a maturity of five years, compared to the typical bank funding term of 2-3 years. 360 Capital is a property investment and funds management group concentrating on strategic investment and active investment management of property assets.