An industry initiative has being launched to increase debt availability to icon industrial companies through greater investment by large super funds, according to Investors Mutual (IML) investment director Anton Tagliaferro.
He told Money Management the initiative, involving IML and “other unnamed industry partners”, was in discussions with major funds and was expecting a result “within a month”.
Tagliaferro said the initiative had been launched to match the need of icon industrial companies for greater debt availability with the need of the major super funds for greater investment return.
“The top 100 companies have $50 billion worth of debt to be rolled over within the next 12 months, and even more thereafter, and many of them are sitting there wondering where they’re going to get their debt from.
“At the same time, there are hundreds of billions of dollars in these large super funds sitting in cash in Australia and earning 4 per cent.
“We are talking to many of those funds in terms of creating a conduit between them because it is a crazy situation to have these large super funds growing at 9 per cent per annum and sitting in cash,” he said.
