After finalizing some fresh debt from banks and U.S. private investors, CSL Limited, the world's second biggest blood products maker, said it plans to buy back A$900 million of its shares.

Speaking at CSL’s annual general meeting in Melbourne Wednesday, Chairwoman Elizabeth Alexander said the board was pleased to be able to continue to return capital to shareholders.

“Through these buybacks, our shareholders benefit from improved investment return ratios, such as earnings per share and return on equity,” said Alexander.

At Tuesday’s closing price of A$30.21, an A$900 million buyback represents approximately 30 million CSL shares or around 6 per cent of CSL’s issued share capital. It is CSL’s fifth share buyback, with the global plasma therapies supplier and vaccine maker returning almost 20 per cent of its shares to shareholders since 2005.

Alexander also told shareholders the company was well progressed in achieving the capital management initiatives foreshadowed earlier this year.

“I am pleased to announce that CSL is now close to finalising negotiations with its banks for new lines of credit for up to the equivalent of A$750 million.”

“CSL has also raised US$750 million through a U.S. private placement, subject to final documentation and closing. The placement was well received by investors and was significantly oversubscribed.”

The new credit facilities and debt placement will significantly lengthen CSL’s debt profile at very attractive long term interest rates and will enable CSL to move towards its objective of maintaining a leverage ratio Net Debt to EBIDTA within the range of 0.7 to 1.2.

“This is an excellent outcome given the volatility of the financial markets and is a welcome endorsement of the strength of the company’s balance sheet and operating position”, said CSL’s Chief Financial Officer, Gordon Naylor.

The new funds will be used to repay existing debt, to fund CSL’s capital management plan and for general corporate purposes, with the lines of credit being drawn down progressively as required.