Big debt component in Qld Motorways bids

The four bidders seeking to buy the network of toll roads and bridges are set to borrow as much as 80 per cent of the $6bn purchase price.

The four bidding groups for Queensland Motorways may borrow as much as $4.8 billion or 80 per cent of a potential $6bn purchase price for the 70 kilometres of tolled roads, bridges and other infrastructure in and around Brisbane, reporting by Data Room has discovered.

Such a high ratio of debt to equity is unusual in an infrastructure deal, and is seen only when the asset is considered highly desirable with stable revenues. Debt more commonly makes up 60 per cent to 70 per cent of a deal.

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