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Highlights
- APA has raised AU$1 billion of senior unsecured debt via a syndicated loan facility.
- Shares of APA were trading at AU$11.59 each, up 3.48% on ASX.
Leading Australian energy infrastructure business APA Group (ASX:APA) announced today (08 June 2022) that it has raised AU$1 billion of senior unsecured debt via a syndicated loan facility.
On the back of the news, shares of APA were trading at AU$11.59 each, up 3.48% on ASX at 11.15 AM AEST. This outperforms ASX 200 Index, which was 0.85% up at 7,156.30 points at 11.16 AM AEST.
More about debt facility
APA enhanced the offering from AU$500 million to AU$1 billion due to the strong support from more than 20 new and existing financiers, the company said in an ASX filing.
The new facility is divided into two equal tranches, each with a tenor of five and seven years. Both tranches are converted to fixed rates, bringing the total cost in line with APA's current average cost of debt.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 08 June 2022
The funds will be utilised to refinance the variable debt used to fund the acquisition of Basslink debt and contribute to APA's growth programmes and general corporate purposes.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 08 June 2022
What does APA do?
APA is a publicly-traded energy infrastructure company on the Australian Securities Exchange (ASX). It has an AU$21 billion portfolio of gas, electricity, solar, and wind assets.
The company delivers almost half of the nation's gas usage. It connects Victoria with South Australia and New South Wales with Queensland through its investments in electricity transmission infrastructure, in line with our aim to enhance communities through responsible energy.
With wind and solar projects all around Australia, APA is one of the country's leading owners and operators of renewable energy producing assets.
Source: © Monkeybusinessimages | Megapixl.com
Recent development
Last month (on 25 May 2022), APA shared that the East Coast Gas Grid will be expanded by 25% in stages two and three. By 2024, the grid expansion is expected to provide around 13% capacity to the Southern States.
According to APA, the stage 2 extension will help during peak winter demand. Additional compression and simultaneous operations on the Moomba Sydney Pipeline and the Southwest Queensland Pipeline will boost winter peak capacity.
Stage 1 would add 12% capacity, according to the ASX release. It is currently being built and is expected to be finished before 2023 winters in the southern state.
Before that, APA had changed the names of its various group entities.
Stock performance: APA shares have grown more than 15% on a YTD basis. In the last one year, the company's shares have jumped almost 27%.
Also Read: APA Group (ASX:APA) shares gain on East Coast Gas Grid expansion
