mark paton - fiig securities - smsfs: directly investing in infrastructure
DESCRIPTION
Mark Paton delivered the presentation at 2014 National PPP Summit. The National PPP Summit is the leading annual event for industry stakeholders to gather and discuss the issues across the national and global PPP markets. The 2014 agenda reviewed current and emerging financing models as well as showcasing best practice strategies for the procurement process, risk transfer and whole-of-life project management. For more information about the event, please visit: http://www.informa.com.au/PPPSummit14TRANSCRIPT
copy 2014 FIIG Securities Limited | wwwfiigcomau FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
FIIG Securities
Connecting SMSFs with PPP opportunities
National PPP Summit
June 2014
copy 2014 FIIG Securities Limited | wwwfiigcomau
SMSFs are now Australiarsquos largest and fastest
growing superannuation sector
PAGE 2
Source InvestmentTrends 2014
copy 2014 FIIG Securities Limited | wwwfiigcomau
Main goal of SMSFs is to build sustainable income
PAGE 3
9
12
33
40
Protecting Existing Assets Against Market Falls
Maximising Capital Growth
Balance of capital growth amp managing risks
Building Sustainable Income Stream
What is your main goal when selecting investments
Source InvestmentTrends 2014 FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
Infrastructure and Bonds are emerging as the
highest growth investment sectors
PAGE 4
25
33
61
75
133
Monthly Income Fund
Absolute Return Fund
ETFsETOs
Corporate Bonds
Infrastructure Funds
Change Expected
Source InvestmentTrends 2014 FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIGrsquos investor base has a strong appetite for
infrastructure investment
PAGE 5
40
12
26
13
18
Airports- Sydney Airport 2020- Sydney Airport 2030
Energy- Envestra- Electranet
PPP- Melbourne Convention Centre- NSW Schools- Royal Womens Hospital- Praeco
Property- ALE Property Trust
TransportDistribution- Adani Abbot Point Coal Terminal- Dampier Bunbury NG Pipeline- Dalrymple Bay Coal Terminal
Mix of FIIG Infrastructure Debt in Custody
Source FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIG has an established track-record for issuing
corporate bonds with a focus on SMSFs
PAGE 6
$100mRated
$50mUnrated
$50mUnrated
$120mUnrated
$35mUnrated
$55mUnrated
$60mUnrated
$50mUnrated
$30mUnrated
copy 2014 FIIG Securities Limited | wwwfiigcomau
Case Study - Adani Abbot Point Terminal Pty Ltd
Date
Issuer
Offer Size
Company
Overview
Key Offer
Terms
Adani Abbot Point Terminal Pty Ltd (Baa3BBB-)
$100 million (upsized from $75 million)
AAPT operates the northernmost coal loading
terminal in Queensland with capacity of 50
million tonnes per annum The terminal has been
operational since 1984 previously run by the
Queensland government
Ranking Senior Secured Notes
Term 6 years
Call option Make whole at any time
Coupon 61 fixed
Spread 250bps to mid-swaps
UOP Dividend Recap
bull FIIG Securities was the Sole Lead Arranger of the AAPT
Notes transaction
bull The offer demonstrated FIIGrsquos capacity to place investment
grade paper in benchmark volumes in addition to our
traditional high yield capability
May 2014
Order Book
Analysis
Holders Volume
On Issue 423 $10000m
Client Type
SMSF 299 $2919m
HNWUHNW 119 $3281m
Institutional 5 $3800m
Bid Size
$50k 186 $930m
$50k - $100k 146 $1382m
$100k - $1m 85 $2678m
$1m + 6 $501m
PAGE 7
copy 2014 FIIG Securities Limited | wwwfiigcomau
Conclusion
PAGE 8
bull SMSF investors represent a large and growing capital pool which is well educated and has a concentration of sophisticated investors
bull Infrastructure bonds issued by PPPs and other vehicles that own infrastructure are appealing to these investors
bull PPPs should consider this pool of capital as a viable alternate capital source for issuing long term bonds
bull Long tenor and inflation linked bonds are particularly attractive
bull FIIG can assist with connecting issuers to these investors
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
copy 2014 FIIG Securities Limited | wwwfiigcomau
SMSFs are now Australiarsquos largest and fastest
growing superannuation sector
PAGE 2
Source InvestmentTrends 2014
copy 2014 FIIG Securities Limited | wwwfiigcomau
Main goal of SMSFs is to build sustainable income
PAGE 3
9
12
33
40
Protecting Existing Assets Against Market Falls
Maximising Capital Growth
Balance of capital growth amp managing risks
Building Sustainable Income Stream
What is your main goal when selecting investments
Source InvestmentTrends 2014 FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
Infrastructure and Bonds are emerging as the
highest growth investment sectors
PAGE 4
25
33
61
75
133
Monthly Income Fund
Absolute Return Fund
ETFsETOs
Corporate Bonds
Infrastructure Funds
Change Expected
Source InvestmentTrends 2014 FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIGrsquos investor base has a strong appetite for
infrastructure investment
PAGE 5
40
12
26
13
18
Airports- Sydney Airport 2020- Sydney Airport 2030
Energy- Envestra- Electranet
PPP- Melbourne Convention Centre- NSW Schools- Royal Womens Hospital- Praeco
Property- ALE Property Trust
TransportDistribution- Adani Abbot Point Coal Terminal- Dampier Bunbury NG Pipeline- Dalrymple Bay Coal Terminal
Mix of FIIG Infrastructure Debt in Custody
Source FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIG has an established track-record for issuing
corporate bonds with a focus on SMSFs
PAGE 6
$100mRated
$50mUnrated
$50mUnrated
$120mUnrated
$35mUnrated
$55mUnrated
$60mUnrated
$50mUnrated
$30mUnrated
copy 2014 FIIG Securities Limited | wwwfiigcomau
Case Study - Adani Abbot Point Terminal Pty Ltd
Date
Issuer
Offer Size
Company
Overview
Key Offer
Terms
Adani Abbot Point Terminal Pty Ltd (Baa3BBB-)
$100 million (upsized from $75 million)
AAPT operates the northernmost coal loading
terminal in Queensland with capacity of 50
million tonnes per annum The terminal has been
operational since 1984 previously run by the
Queensland government
Ranking Senior Secured Notes
Term 6 years
Call option Make whole at any time
Coupon 61 fixed
Spread 250bps to mid-swaps
UOP Dividend Recap
bull FIIG Securities was the Sole Lead Arranger of the AAPT
Notes transaction
bull The offer demonstrated FIIGrsquos capacity to place investment
grade paper in benchmark volumes in addition to our
traditional high yield capability
May 2014
Order Book
Analysis
Holders Volume
On Issue 423 $10000m
Client Type
SMSF 299 $2919m
HNWUHNW 119 $3281m
Institutional 5 $3800m
Bid Size
$50k 186 $930m
$50k - $100k 146 $1382m
$100k - $1m 85 $2678m
$1m + 6 $501m
PAGE 7
copy 2014 FIIG Securities Limited | wwwfiigcomau
Conclusion
PAGE 8
bull SMSF investors represent a large and growing capital pool which is well educated and has a concentration of sophisticated investors
bull Infrastructure bonds issued by PPPs and other vehicles that own infrastructure are appealing to these investors
bull PPPs should consider this pool of capital as a viable alternate capital source for issuing long term bonds
bull Long tenor and inflation linked bonds are particularly attractive
bull FIIG can assist with connecting issuers to these investors
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
copy 2014 FIIG Securities Limited | wwwfiigcomau
Main goal of SMSFs is to build sustainable income
PAGE 3
9
12
33
40
Protecting Existing Assets Against Market Falls
Maximising Capital Growth
Balance of capital growth amp managing risks
Building Sustainable Income Stream
What is your main goal when selecting investments
Source InvestmentTrends 2014 FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
Infrastructure and Bonds are emerging as the
highest growth investment sectors
PAGE 4
25
33
61
75
133
Monthly Income Fund
Absolute Return Fund
ETFsETOs
Corporate Bonds
Infrastructure Funds
Change Expected
Source InvestmentTrends 2014 FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIGrsquos investor base has a strong appetite for
infrastructure investment
PAGE 5
40
12
26
13
18
Airports- Sydney Airport 2020- Sydney Airport 2030
Energy- Envestra- Electranet
PPP- Melbourne Convention Centre- NSW Schools- Royal Womens Hospital- Praeco
Property- ALE Property Trust
TransportDistribution- Adani Abbot Point Coal Terminal- Dampier Bunbury NG Pipeline- Dalrymple Bay Coal Terminal
Mix of FIIG Infrastructure Debt in Custody
Source FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIG has an established track-record for issuing
corporate bonds with a focus on SMSFs
PAGE 6
$100mRated
$50mUnrated
$50mUnrated
$120mUnrated
$35mUnrated
$55mUnrated
$60mUnrated
$50mUnrated
$30mUnrated
copy 2014 FIIG Securities Limited | wwwfiigcomau
Case Study - Adani Abbot Point Terminal Pty Ltd
Date
Issuer
Offer Size
Company
Overview
Key Offer
Terms
Adani Abbot Point Terminal Pty Ltd (Baa3BBB-)
$100 million (upsized from $75 million)
AAPT operates the northernmost coal loading
terminal in Queensland with capacity of 50
million tonnes per annum The terminal has been
operational since 1984 previously run by the
Queensland government
Ranking Senior Secured Notes
Term 6 years
Call option Make whole at any time
Coupon 61 fixed
Spread 250bps to mid-swaps
UOP Dividend Recap
bull FIIG Securities was the Sole Lead Arranger of the AAPT
Notes transaction
bull The offer demonstrated FIIGrsquos capacity to place investment
grade paper in benchmark volumes in addition to our
traditional high yield capability
May 2014
Order Book
Analysis
Holders Volume
On Issue 423 $10000m
Client Type
SMSF 299 $2919m
HNWUHNW 119 $3281m
Institutional 5 $3800m
Bid Size
$50k 186 $930m
$50k - $100k 146 $1382m
$100k - $1m 85 $2678m
$1m + 6 $501m
PAGE 7
copy 2014 FIIG Securities Limited | wwwfiigcomau
Conclusion
PAGE 8
bull SMSF investors represent a large and growing capital pool which is well educated and has a concentration of sophisticated investors
bull Infrastructure bonds issued by PPPs and other vehicles that own infrastructure are appealing to these investors
bull PPPs should consider this pool of capital as a viable alternate capital source for issuing long term bonds
bull Long tenor and inflation linked bonds are particularly attractive
bull FIIG can assist with connecting issuers to these investors
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
copy 2014 FIIG Securities Limited | wwwfiigcomau
Infrastructure and Bonds are emerging as the
highest growth investment sectors
PAGE 4
25
33
61
75
133
Monthly Income Fund
Absolute Return Fund
ETFsETOs
Corporate Bonds
Infrastructure Funds
Change Expected
Source InvestmentTrends 2014 FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIGrsquos investor base has a strong appetite for
infrastructure investment
PAGE 5
40
12
26
13
18
Airports- Sydney Airport 2020- Sydney Airport 2030
Energy- Envestra- Electranet
PPP- Melbourne Convention Centre- NSW Schools- Royal Womens Hospital- Praeco
Property- ALE Property Trust
TransportDistribution- Adani Abbot Point Coal Terminal- Dampier Bunbury NG Pipeline- Dalrymple Bay Coal Terminal
Mix of FIIG Infrastructure Debt in Custody
Source FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIG has an established track-record for issuing
corporate bonds with a focus on SMSFs
PAGE 6
$100mRated
$50mUnrated
$50mUnrated
$120mUnrated
$35mUnrated
$55mUnrated
$60mUnrated
$50mUnrated
$30mUnrated
copy 2014 FIIG Securities Limited | wwwfiigcomau
Case Study - Adani Abbot Point Terminal Pty Ltd
Date
Issuer
Offer Size
Company
Overview
Key Offer
Terms
Adani Abbot Point Terminal Pty Ltd (Baa3BBB-)
$100 million (upsized from $75 million)
AAPT operates the northernmost coal loading
terminal in Queensland with capacity of 50
million tonnes per annum The terminal has been
operational since 1984 previously run by the
Queensland government
Ranking Senior Secured Notes
Term 6 years
Call option Make whole at any time
Coupon 61 fixed
Spread 250bps to mid-swaps
UOP Dividend Recap
bull FIIG Securities was the Sole Lead Arranger of the AAPT
Notes transaction
bull The offer demonstrated FIIGrsquos capacity to place investment
grade paper in benchmark volumes in addition to our
traditional high yield capability
May 2014
Order Book
Analysis
Holders Volume
On Issue 423 $10000m
Client Type
SMSF 299 $2919m
HNWUHNW 119 $3281m
Institutional 5 $3800m
Bid Size
$50k 186 $930m
$50k - $100k 146 $1382m
$100k - $1m 85 $2678m
$1m + 6 $501m
PAGE 7
copy 2014 FIIG Securities Limited | wwwfiigcomau
Conclusion
PAGE 8
bull SMSF investors represent a large and growing capital pool which is well educated and has a concentration of sophisticated investors
bull Infrastructure bonds issued by PPPs and other vehicles that own infrastructure are appealing to these investors
bull PPPs should consider this pool of capital as a viable alternate capital source for issuing long term bonds
bull Long tenor and inflation linked bonds are particularly attractive
bull FIIG can assist with connecting issuers to these investors
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIGrsquos investor base has a strong appetite for
infrastructure investment
PAGE 5
40
12
26
13
18
Airports- Sydney Airport 2020- Sydney Airport 2030
Energy- Envestra- Electranet
PPP- Melbourne Convention Centre- NSW Schools- Royal Womens Hospital- Praeco
Property- ALE Property Trust
TransportDistribution- Adani Abbot Point Coal Terminal- Dampier Bunbury NG Pipeline- Dalrymple Bay Coal Terminal
Mix of FIIG Infrastructure Debt in Custody
Source FIIG Analysis
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIG has an established track-record for issuing
corporate bonds with a focus on SMSFs
PAGE 6
$100mRated
$50mUnrated
$50mUnrated
$120mUnrated
$35mUnrated
$55mUnrated
$60mUnrated
$50mUnrated
$30mUnrated
copy 2014 FIIG Securities Limited | wwwfiigcomau
Case Study - Adani Abbot Point Terminal Pty Ltd
Date
Issuer
Offer Size
Company
Overview
Key Offer
Terms
Adani Abbot Point Terminal Pty Ltd (Baa3BBB-)
$100 million (upsized from $75 million)
AAPT operates the northernmost coal loading
terminal in Queensland with capacity of 50
million tonnes per annum The terminal has been
operational since 1984 previously run by the
Queensland government
Ranking Senior Secured Notes
Term 6 years
Call option Make whole at any time
Coupon 61 fixed
Spread 250bps to mid-swaps
UOP Dividend Recap
bull FIIG Securities was the Sole Lead Arranger of the AAPT
Notes transaction
bull The offer demonstrated FIIGrsquos capacity to place investment
grade paper in benchmark volumes in addition to our
traditional high yield capability
May 2014
Order Book
Analysis
Holders Volume
On Issue 423 $10000m
Client Type
SMSF 299 $2919m
HNWUHNW 119 $3281m
Institutional 5 $3800m
Bid Size
$50k 186 $930m
$50k - $100k 146 $1382m
$100k - $1m 85 $2678m
$1m + 6 $501m
PAGE 7
copy 2014 FIIG Securities Limited | wwwfiigcomau
Conclusion
PAGE 8
bull SMSF investors represent a large and growing capital pool which is well educated and has a concentration of sophisticated investors
bull Infrastructure bonds issued by PPPs and other vehicles that own infrastructure are appealing to these investors
bull PPPs should consider this pool of capital as a viable alternate capital source for issuing long term bonds
bull Long tenor and inflation linked bonds are particularly attractive
bull FIIG can assist with connecting issuers to these investors
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
copy 2014 FIIG Securities Limited | wwwfiigcomau
FIIG has an established track-record for issuing
corporate bonds with a focus on SMSFs
PAGE 6
$100mRated
$50mUnrated
$50mUnrated
$120mUnrated
$35mUnrated
$55mUnrated
$60mUnrated
$50mUnrated
$30mUnrated
copy 2014 FIIG Securities Limited | wwwfiigcomau
Case Study - Adani Abbot Point Terminal Pty Ltd
Date
Issuer
Offer Size
Company
Overview
Key Offer
Terms
Adani Abbot Point Terminal Pty Ltd (Baa3BBB-)
$100 million (upsized from $75 million)
AAPT operates the northernmost coal loading
terminal in Queensland with capacity of 50
million tonnes per annum The terminal has been
operational since 1984 previously run by the
Queensland government
Ranking Senior Secured Notes
Term 6 years
Call option Make whole at any time
Coupon 61 fixed
Spread 250bps to mid-swaps
UOP Dividend Recap
bull FIIG Securities was the Sole Lead Arranger of the AAPT
Notes transaction
bull The offer demonstrated FIIGrsquos capacity to place investment
grade paper in benchmark volumes in addition to our
traditional high yield capability
May 2014
Order Book
Analysis
Holders Volume
On Issue 423 $10000m
Client Type
SMSF 299 $2919m
HNWUHNW 119 $3281m
Institutional 5 $3800m
Bid Size
$50k 186 $930m
$50k - $100k 146 $1382m
$100k - $1m 85 $2678m
$1m + 6 $501m
PAGE 7
copy 2014 FIIG Securities Limited | wwwfiigcomau
Conclusion
PAGE 8
bull SMSF investors represent a large and growing capital pool which is well educated and has a concentration of sophisticated investors
bull Infrastructure bonds issued by PPPs and other vehicles that own infrastructure are appealing to these investors
bull PPPs should consider this pool of capital as a viable alternate capital source for issuing long term bonds
bull Long tenor and inflation linked bonds are particularly attractive
bull FIIG can assist with connecting issuers to these investors
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
copy 2014 FIIG Securities Limited | wwwfiigcomau
Case Study - Adani Abbot Point Terminal Pty Ltd
Date
Issuer
Offer Size
Company
Overview
Key Offer
Terms
Adani Abbot Point Terminal Pty Ltd (Baa3BBB-)
$100 million (upsized from $75 million)
AAPT operates the northernmost coal loading
terminal in Queensland with capacity of 50
million tonnes per annum The terminal has been
operational since 1984 previously run by the
Queensland government
Ranking Senior Secured Notes
Term 6 years
Call option Make whole at any time
Coupon 61 fixed
Spread 250bps to mid-swaps
UOP Dividend Recap
bull FIIG Securities was the Sole Lead Arranger of the AAPT
Notes transaction
bull The offer demonstrated FIIGrsquos capacity to place investment
grade paper in benchmark volumes in addition to our
traditional high yield capability
May 2014
Order Book
Analysis
Holders Volume
On Issue 423 $10000m
Client Type
SMSF 299 $2919m
HNWUHNW 119 $3281m
Institutional 5 $3800m
Bid Size
$50k 186 $930m
$50k - $100k 146 $1382m
$100k - $1m 85 $2678m
$1m + 6 $501m
PAGE 7
copy 2014 FIIG Securities Limited | wwwfiigcomau
Conclusion
PAGE 8
bull SMSF investors represent a large and growing capital pool which is well educated and has a concentration of sophisticated investors
bull Infrastructure bonds issued by PPPs and other vehicles that own infrastructure are appealing to these investors
bull PPPs should consider this pool of capital as a viable alternate capital source for issuing long term bonds
bull Long tenor and inflation linked bonds are particularly attractive
bull FIIG can assist with connecting issuers to these investors
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
copy 2014 FIIG Securities Limited | wwwfiigcomau
Conclusion
PAGE 8
bull SMSF investors represent a large and growing capital pool which is well educated and has a concentration of sophisticated investors
bull Infrastructure bonds issued by PPPs and other vehicles that own infrastructure are appealing to these investors
bull PPPs should consider this pool of capital as a viable alternate capital source for issuing long term bonds
bull Long tenor and inflation linked bonds are particularly attractive
bull FIIG can assist with connecting issuers to these investors
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 9 FIIG Securities Limited | ABN 68 085 661 632 | AFS Licence No 224659
Disclaimer
FIIG Securities Limited (ldquoFIIGrdquo) provides general financial product advice only As a result this document and any information advice or
recommendation has been provided by FIIG without taking account of your objectives financial situation or needs Because of this you should
before acting on any information advice or recommendation from FIIG consider the appropriateness of the information advice or
recommendation having regard to your objectives financial situation and needs If this document or any information advice or
recommendation relates to the acquisition or possible acquisition of a particular financial product you should obtain a product disclosure
document relating to the product and consider the document before making any decision about whether to acquire the product FIIG its
directors representatives employees or related parties may have an interest in any companies or entities or any financial product issued by
companies and entities and may earn revenue from the sale or purchase of any financial product referred to in this document or in any
information advice or recommendation Neither FIIG nor any of its directors representatives employees or agents make any representation or
warranty as to the reliability accuracy or completeness of this document or any information advice or recommendation Nor do they accept any
liability or responsibility arising in any way (including negligence) for errors in or omissions from this document or any information advice or
recommendation Any reference to credit ratings of companies entities or financial products must only be relied upon by a ldquowholesale clientrdquo as
that term is defined in the Corporations Act 2001 (Cth) FIIG strongly recommends that you seek independent accounting financial taxation and
legal advice tailored to your specific objectives financial situation or needs prior to making any investment decision
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited
wwwfiigcomau copy 2014 FIIG Securities Limited | 10
Brisbane
Level 8
167 Eagle Street
Brisbane
Queensland 4000
Australia
T +61 (0)7 3231 6666
F +61 (0)7 3231 6699
Melbourne
Level 21
90 Collins Street
Melbourne
Victoria 3000
Australia
T +61 (0)3 8668 8888
F +61 (0)3 8668 8899
Sydney
Level 20
126 Phillip Street
Sydney
New South Wales 2000
Australia
T +61 (0)2 9697 8700
F +61 (0)2 9697 8799
Perth
Level 28
140 St Georges Terrace
Perth
Western Australia 6000
Australia
T +61 (0)8 9278 2767
F +61 (0)8 9278 2727
copy 2014 FIIG Securities Limited