CBA to underwrite Leighton expansion
(2 June 2006 – Australia) Commonwealth Bank has inked a deal with Leighton Holdings to provide a A$750 million fully underwritten revolving operating lease facility.
The facility includes a substantial initial sale and lease-back component and will provide guaranteed funding availability to support the continued expansion of Leighton’s plant fleet, which is expected to continue growing strongly in light of the demand for contract mining.
CBA executive general manager of Global Finance Solutions, Paul Riordan, described the transaction as "ground breaking" for both parties.
"We’re developing a mutually strategic long term partnership between the world’s largest contract miner and Australia’s largest financial services organisation," he said.
Riordan said the bank expected the iron ore and coal sectors to continue growing.
"By utilising the expertise of the bank’s natural resources, equipment management and structured asset finance teams, the bank successfully structured this facility to provide significant flexibility and operational efficiencies for Leighton Holdings." Riordan said.
He said the transaction meant CBA had now added large value mobile mining equipment to its existing portfolio of rail rolling stock, ships and aircraft under operating leases.
"This transaction is an excellent example of the bank providing innovative funding solutions to its major institutional customers, and is a model that is able to be replicated in other asset classes," he said.
CBA executive general manager of Global Finance Solutions, Paul Riordan, described the transaction as "ground breaking" for both parties.
"We’re developing a mutually strategic long term partnership between the world’s largest contract miner and Australia’s largest financial services organisation," he said.
Riordan said the bank expected the iron ore and coal sectors to continue growing.
"By utilising the expertise of the bank’s natural resources, equipment management and structured asset finance teams, the bank successfully structured this facility to provide significant flexibility and operational efficiencies for Leighton Holdings." Riordan said.
He said the transaction meant CBA had now added large value mobile mining equipment to its existing portfolio of rail rolling stock, ships and aircraft under operating leases.
"This transaction is an excellent example of the bank providing innovative funding solutions to its major institutional customers, and is a model that is able to be replicated in other asset classes," he said.
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