Transurban Group
.JPG)
TCL Details
Transurban Group (ASX: TCL) has announced that it has reached financial close on the US$475 million 395 Express Lanes project. The project will extend the 95 Express Lanes for 13 kilometers north to the Washington DC border, converting two existing high-occupancy vehicle lanes to three high-occupancy toll lanes to provide customers with direct access to Washington DC. The project was approved in February 2017 by the Virginia Department of Transportation, and construction was commenced in July 2017 and is expected to be complete in late 2019. Debt financing for the project includes approximately US$233 million in private activity bonds (par amount) and a US$45 million loan from the Virginia Transportation Infrastructure Bank. Moreover, the 395 Express Lanes project will extend the benefits customers have experienced on the 95 Express Lanes and provide much needed congestion relief in the I-395 corridor. Further, the company has announced that Transurban Finance Company Pty Ltd (TFC) has obtained consent to amend certain provisions of its corporate debt Security Trust Deed. Given the increasing spend on infrastructure and robust project pipeline,we maintain a “Buy” recommendation at the current market price of $11.59
TCL Daily chart; (Source: Thomson Reuters)
Sydney Airport Holdings Pty Ltd
SYD Details
During June 2017, Sydney Airport has reported 9.7% growth in its International traffic versus the prior corresponding period (pcp), and represents strongest monthly result this year. Domestic traffic also grew strongly at 3.6% above the pcp, contributing to overall traffic growth of 5.8% for the month. Moreover, International and domestic traffic continues to be driven by higher load factors and larger aircraft. The company’s international markets continue to perform well, particularly to China, and follows the Open Skies agreement between the two countries in December 2016. Further, Sydney Airport is well placed to benefit from continued passenger growth from China, with a recent study showing that Australia has risen to the fourth most desirable leisure destination for Chinese nationals to visit in coming years. For the six months ended 30 June 2017, company reported a strong international growth of 7.7% as compared to the pcp, and will report financial results associated with the half year on 22 August 2017. We maintain an “Expensive” recommendation at the current market price of $6.83
SYD Daily chart; (Source: Thomson Reuters)
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