Melbourne hospital sold A$1.4 bln bonds-source

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SYDNEY, Nov 28 (Reuters) - The Royal Children's Hospital in
the southern Australian city of Melbourne has sold around A$1.4
billion ($1.2 billion) of 28.25-year infrastructure bonds, a
market source said on Wednesday.

The proceeds are to finance the hospital's redevelopment
expected to be completed in 2011.

Ratings agency Moody's had rated the hospital's debt
earlier in the week, but did not give details.

The market source said the issue comprised four tranches,
all linked to inflation in the form of CPI indexing-annuity
bonds.

The bonds were partially wrapped by Financial Guaranty
Insurance Company (FGIC). Credit-wrapped bonds are backed by
financial guarantees, offering investors greater security but
also a lower return than standard bonds.

Goldman Sachs JBWere and Dexia were involved in the debt
sale. The bonds, issued by a funding vehicle called Ancora
(RCH) Pty Ltd., were sold to international and domestic buyers,
the market source said.

Details, as given by the market source, are as follows:

1) A$1.1 billion of 28.25-year senior FGIC-wrapped
inflation-linked bonds, rated Aaa by Moody's, lead by Goldman
Sachs JBWere;

2) A$125 million of 28.25-year senior inflation-linked
bonds, rated Baa2 by Moody's, lead by Goldman Sachs JBWere;

3) A$125 million of 28.25-year senior inflation-linked
bonds, rated Baa2 by Moody's, lead by Dexia;

4) A$60 million of 28.25-year subordinated inflation-linked
bonds, rated Ba1 by Moody's, lead by Goldman Sachs JBWere.

Pricing of the bonds was not disclosed by the leads.

The hospital's redevelopment is led by a consortium
comprising investment and advisory firm Babcock & Brown
(BNB.AX: Quote, Profile, Research, Stock Buzz), builder Bovis Lend Lease (LLC.AX: Quote, Profile, Research, Stock Buzz), facilities manager
Spotless Group (SPT.AX: Quote, Profile, Research, Stock Buzz) and architects Billard Leece, Bates
Smart.

The project's capital structure also includes A$67 million
in equity, according to Moody's.
($1=A$1.14)
(Reporting by Cecile Lefort)