Insights

Why the Transurban (ASX:TCL) share price is on watch

The Transurban Group (ASX: TCL) share price is one to watch after a pre-market announcement relating to WestConnex Group’s financing.
The post Why the Transurban (ASX:TCL) share price is on watch appeared first on The Motley Fool Australia. –

green road sign with white up arrow representing rising atlas arteria share price

The Transurban Group (ASX: TCL) share price is one to watch after a pre-market capital raising announcement from the Aussie infrastructure group.

Why is the Transurban share price on watch?

Transurban provided an update on financing arrangements for the financing vehicle of WestConnex Group. Transurban owns a 25.5% interest in WestConnex Group alongside others including the New South Wales Government and UniSuper.

WestConnex Finance Company Pty Limited will raise A$650 million via a 10-year, senior secured A$ medium-term note. Pricing was completed on 23 March 2021 with settlement expected on 31 March 2021.

The Transurban share price is one to watch this morning following the price-sensitive announcement on the ASX. Proceeds from the raise will be used for general corporate purposes and to partially refinance an existing A$1.2 billion, 2-year bridge facility.

Transurban interim CFO Tom McKay said, “We are pleased with the strong reception that [WestConnex Group] received in the domestic bond market.” He added, “The success of the issuance demonstrates the underlying strength of the [WestConnex Group] business”. 

The transaction represents WestConnex Group’s first bond issuance. Securing flexible financing and extending the group’s debt maturity profile is a positive for WestConnex Group.

The Transurban share price has had a volatile start to 2021 and remains down 7.1% since the start of the year. Shares in the Aussie toll road operator were smashed in the March 2020 bear market before rebounding strongly. In fact, shares in the infrastructure group are up 14.0% in the last 12 months.

However, that means the Transurban share price has underperformed the S&P/ASX 200 Index (ASX: XJO). The benchmark Aussie index is up 42.4% in the last year after a strong rebound subsequent to the coronavirus pandemic.

Foolish takeaway

The Transurban share price is one to watch after the latest financing announcement for WestConnex Group. Shares in the toll road operator have been under pressure in 2021 after a soft start to the year.

Transurban boasted a $34.9 billion market capitalisation with a 2.4% dividend yield as at Tuesday’s close.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Transurban (ASX:TCL) share price is on watch appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!