Amadeusz Juskowiak

Merrill mandated for iel us note

Merrill Lynch Capital Markets said it received a mandate from Industrial Equity Ltd IEL of Australia to arrange a letter of credit facility in support of 100 mln dlrs of medium term notes and US Commercial paper to be sold in the US Domestic market

Merrill which will be the dealer for the medium term notes and commercial paper said this was the first facility of its kind Sumitomo Trust and Banking Co Ltd has agreed to provide the letter of credit

The letter of credit has a five year term with an evergreen feature allowing for extension at the support banks option

The notes and paper will be issued by IELs Sydneybased subsidiary IEL Finance Ltd

The letter of credit will be underwritten by a group of banks who will be paid a 20 basis point facility fee and a 25 basis point utilisation fee

IEL itself is 51 pct owned by Brierley Investments Ltd of New Zealand Merrill Lynch said