The Transurban Group (ASX: TCL) share price is up 3.5% today after the toll road operator's shares returned to the ASX boards after its giant $1.9 billion capital raising.
The group sold new shares at $11.40 each which means current holders are now sitting on a 10.2% profit, although it doesn't appear there are many sellers of the stock which goes to underline the quality of the business.
For the six-month period ending December 31 2017 Transurban will pay a 28.5 cents per share and the board expects to pay a total of 56 cents per share over fiscal 2018. As such the group offers a forward yield of 4.41% plus the tax effective benefits of some limited franking credits.
Transurban is raising $1.9 billion to help fund its $4 billion bill for constructing Melbourne's West Gate Tunnel road and infrastructure project. In total the project is expected to cost around $5 billion with taxpayers being asked to meet the difference.
Transurban will also fund some of the project's costs by issuing debt securitised against future toll road payments generated by the project.
