Asciano heads to the market
Australian ports investor Asciano is looking to the market to raise A$2bn (US$1.6bn) in order to reduce a debt burden estimated at A$4.9bn (US$3.9bn). The company examined a range of sale and recapitalisation offers in the knowledge that A$2.7bn (US$2.2bn)-worth of the debt is due to be settled this financial year. The rights issue, which will be fully underwritten by UBS and Royal Bank of Scotland, will if successful relieve Asciano of the need to sell assets.
While not calling for outright Government intervention nor that councils be pushed to sell their local ports, Mr Parker nonetheless lamented that most ports are making “truly abysmal financial returns on their assets”.
