Amadeusz Juskowiak

Iel sets 100 mln dlr notecommercial paper issue

Australian investment group Industrial Equity Ltd IEL said it will raise 100 mln US Dlrs by the issue of medium term notes and commercial paper in the US Domestic market

IEL has mandated Merrill Lynch Capital Markets to arrange a letter of credit LOC facility in support of the notes and commercial paper making this the first facility of its kind the company said in a statement

The notes will be issued by its IEL Finance Ltd unit

Merrill Lynch will be the note and paper dealer and Sumitomo Trust and Banking Co Ltd will provide the LOC

The term of the LOC is five years with an evergreen feature which provides for annual reinstatement of the fiveyear term at the support banks option IEL said

The LOC will be underwritten by a group of banks which will receive a facility fee of 20 basis points plus a utilisation fee of 25 basis points it added