Transurban has raised AUD 302 million (US$ 214.05 million) of non-recourse debt via a new bank debt facility with a tenor of 3.25 years for Eastern Distributor M1 toll road PPP in Sydney. Transurban owns a 75.1% interest in the the PPP project.

M1 is a 6 km toll road forming a key link in Sydney’s orbital road network, linking north Sydney via the Sydney Harbour Tunnel and Sydney Harbour Bridge, and Sydney’s CBD with Sydney Airport and the city’s southern suburbs. The M1 benefits from a 48 year concession to 2048.

The funds raised will be used to repay an existing AUD 300 million (US$ 212.63 million) debt issued by the project company in 2013. The interest rate exposure has been hedged for the term of the new bank debt facility.

Herbert Smith Freehills acted as financial advisor for Transurban on refinancing of the the PPP project.