Corporate Report for the year ended 30 June 2022
Introduction and overview
Business performance
Governance and risk
Directors’ report
Remuneration report
Financial statements
Sustainability supplement
Security holder information
Transurban’s approach to capital management supports our investment proposition: to balance growth in distributions to investors and investments to create long-term value. Capital management
1 P roportional drawn debt inclusive of issued letters of credit. CAD, CHF, EUR, NOK and USD debt converted at the hedged rate where cross currency swaps are in place. USD debt is converted at the spot exchange rate (0.6884 at 30 June 2022) where no cross currency swaps are in place. CAD debt is converted at the spot exchange rate (0.8885 at 30 June 2022) where no cross currency swaps are in place 2 T he full value of debt facilities is shown. Debt is shown in the financial year in which is matures 3 D ebt values are shown in AUD as at 30 June 2022. CAD, EUR, NOK and USD debt converted at the hedged rate where cross currency swaps are in place. USD debt is converted at the spot exchange rate (0.6884 at 30 June 2022) where no cross currency swaps are in place. CAD debt is converted at the spot exchange rate (0.8885 at 30 June 2022) Transurban Holdings Limited and controlled entities. This takes the total FY22 distribution to 41.0 cents per stapled security, of which 2.0 cents is fully franked. This distribution includes 2.7 cents per security in Capital Releases resulting from the increased stake in WestConnex which has been used to minimise the dilutive impact of the transaction, with total FY22 Free Cash (including Capital Releases) coverage of 122%. the relevant asset’s performance, debt capital market and broader macroeconomic conditions over the near term. Transurban is proactive in maintaining a robust balance sheet to ensure sufficient capacity to cover near-term liquidity requirements, retaining access to a diverse range of funding markets, as well as additional funding sources such as Capital Releases. Distribution A distribution totalling 26.0 cents per stapled security will be paid on 23 August 2022 for the six months ended 30 June 2022. This will be made up of a 24.0 cents partly franked distribution from Transurban Holding Trust and controlled entities and a 2.0 cent fully franked dividend from
Capital management The underlying strength of the Group’s cashflows support security holder distributions and allows efficient funding of opportunities through a combination of debt and equity funding. Sydney Transport Partners completed the acquisition of the remaining 49% share in WestConnex from the NSW Government in October 2021. Transurban funded its share by $1.4 billion of available corporate liquidity and $4.22 billion in new equity including a $3.97 billion fully underwritten pro-rata renounceable entitlement offer.
Debt overview Transurban refinanced $3.4 billion of debt across bank and debt capital markets (excluding letters of credit and undrawn borrowing facilities) to support funding initiatives and the delivery of projects across the business. In doing so, the Group’s weighted average cost of AUD debt decreased to 3.9%. The average tenor decreased to 7.1 years, however this would have been 6.7 years absent any refinancing activities. As at 30 June 2022 the Group’s gearing level was relatively stable at 34.2% and FFO/ Debt decreased slightly to 9.1%. Prudent management of the debt book remains core to the funding strategy, with a focus on growing the diversity of funding sources while reducing funding and liquidity risk. Funding growth Transurban is well capitalised to fund the near-term pipeline of growth projects with capex profile expected to broadly align with the timing of Capital Releases. Timing and amount of Capital Releases remain uncertain and subject to a variety of factors, including
Figure 20: Group proportional debt diversity 1
GOVERNMENT DEBT
LETTERS OF CREDIT
USD NOTES (REG S)
BANK DEBT
USD NOTES (PABs)
AUD PRIVATE PLACEMENT AMTN
USD NOTES (144a)
US PRIVATE PLACEMENT
CAD NOTES
NOK NOTES
EUR NOTES
CHF
Figure 21: Group debt maturity profile ($ millions) 2,3
Corporate
Non-Recourse
5,394
2,596
2,297
1,848
2,114
1,234
952
2,552
993
569
1,876
1,836
1,700
1,611 1,652
1,332
1,297
1,317
1,259
1,239
866
570
215
FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33–37 FY38–42 FY43+
72
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