Business performance
Capital management Transurban’s approach to capital management supports our investment proposition: to balance growth in distributions to investors and investments to create long-term value.
Funding growth Transurban is well capitalised to fund the near-term pipeline of growth projects with existing liquidity sources. Timing and amount of Capital Releases remain uncertain and are subject to a variety of factors, including the relevant asset’s performance, access to and stability in debt capital markets, as well as 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 and retain access to a diverse range of funding options. Distribution A distribution totalling 32.0 cps will be paid on 13 August 2024 for the six months ended 30 June 2024 and does not include a Capital Release. This will be made up of a 32 cents distribution from Transurban Holding Trust and its controlled entities which will be partially franked. This takes the total FY24 distribution to 62.0 cents per stapled security with free cash excluding capital release coverage of 102%. The FY24 distribution includes ~3.1 cps of cash received from WestConnex, previously held during construction.
Capital management The underlying strength of the Group’s cashflows supports security holder distributions and allows efficient funding of opportunities through a combination of debt and equity funding. Debt overview Transurban raised $5.0 billion 1 of debt across bank and debt capital markets to support funding initiatives and the delivery of projects
across the business. In doing so, the Group’s weighted average cost of AUD debt increased slightly to 4.5%. The Group’s weighted average tenor is currently 6.7 years. As at 30 June 2024, the Group’s gearing level increased slightly to 39.9% and Funds from Operations (FFO)/Debt decreased to 11.5%. 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.
Figure 17: Group proportional debt diversity
USD notes (144a) 11%
ITL 7% Government debt 9%
AMTN 6%
CAD notes 3%
Bank debt 12%
Letters of credit 1% USD notes (REG S) 2% USD notes (PABs) 3%
Other 10%
A$25,868M
US private placement 13%
NOK notes 0.5%
AUD private placement 1%
CHF notes 2%
EUR notes 30%
Figure 18: Group debt maturity profile ($ millions) 2,3
FY25
907
534
FY26
1,799
1,999
1,558
2,546
FY27
2,092
2,860
FY28
2,508
748
FY29
1,332
2,044
FY30
1,239
2,398
FY31
FY32
836
1,463
FY33
1,060
1,877
FY34
1,559
1,406
5,074
FY35–39
FY40–44
1,330
FY45+
1,480
Corporate
Non-Recourse
1 D ebt exclusive 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 (0.6630 at 30 June 2024) where no cross currency swaps are in place. CAD debt is converted at the spot exchange rate (0.9093 at 30 June 2024) 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 2024. CAD, EUR, NOK and USD debt is converted at the hedged rate where cross currency swaps are in place. USD debt is converted at the spot exchange rate (0.6630 at 30 June 2024) where no cross currency swaps are in place. CAD debt is converted at the spot exchange rate (0.9093 at 30 June 2024) where no cross currency swaps are in place
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