Australia's United Group eyes U.S. bonds-source

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SYDNEY, May 12 (Reuters) - Australian construction and
engineering firm United Group Ltd (UGL.AX) is planning to raise
long-dated debt in the U.S. private placement market, a market
source said on Monday.

The firm is looking for around $100 million in what would
be its second debt raising in the U.S. following a private
placement in 2006.

ANZ and JPMorgan, who are arranging the offer, declined to
comment.

The U.S. private placement market has been a popular source
of funds for Australian and New Zealand companies looking for
long-dated debt.

New Zealand dairy giant Fonterra Co-operative Group Ltd and
Australian steel maker Bluescope Steel Ltd (BSL.AX) are also
looking to raise debt in the same market.

Typical buyers of private note placements are U.S.
insurance companies keen on long-dated paper to match their
assets.
(Reporting by Cecile Lefort)