Dalrymple Bay Infrastructure successfully issues inaugural A$350m medium-term note

Today, Dalrymple Bay Infrastructure Ltd (ASX: DBI) announced a successful pricing of its inaugural A$350 million Australian Medium-Term Note issuance, backed by strong investor demand and set to diversify its funding sources.

What did Dalrymple Bay Infrastructure report?

• Successfully priced A$350 million in 5-year fixed rate senior secured notes at 6.234% per annum
• Issue margin of 160 basis points over S/Q ASW
• Order book more than 2.5 times oversubscribed
• Expected BBB rating from Standard & Poor’s
• Settlement due 24 March 2026, subject to standard conditions

What else do investors need to know?

The new notes mark Dalrymple Bay Infrastructure’s first ever offering in the Australian Medium-Term Note market, reflecting a step forward in its capital management strategy. The issuance is described as leverage neutral, meaning it won’t change the company’s debt levels, but aims to provide additional liquidity for committed capital expenditure—not for expansion, but to keep existing assets in top shape.

Joint lead managers for the transaction included ANZ, Barclays/Barrenjoey, and Westpac. The strong investor appetite signals ongoing market confidence in Dalrymple Bay Infrastructure’s financial health and creditworthiness.

What did Dalrymple Bay Infrastructure management say?

Managing Director and Chief Executive Officer Michael Riches said:

We are delighted with the strong level of support from investors for our inaugural issuance in the Australian medium-term note market. Accessing a new debt capital market further diversifies DBI’s funding base at attractive rates.

What’s next for Dalrymple Bay Infrastructure?

The company says the proceeds will support its committed non-expansionary capital expenditure plan, helping maintain and enhance its world-class Dalrymple Bay Terminal. Management notes that tapping a new debt market fits the broader strategy to deliver value to security holders through stable cash flow and prudent funding.

Looking ahead, Dalrymple Bay Infrastructure aims to keep funding flexible, ensuring it can continue to provide reliable infrastructure for the global metallurgical coal export supply chain.

Dalrymple Bay Infrastructure share price snapshot

Over the past 12 months, Dalrymple Bay Infrastructure shares have risen 39%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

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The post Dalrymple Bay Infrastructure successfully issues inaugural A$350m medium-term note appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.