Ampol (ASX:ALD) plans AU$150M sub note issue, shares fall

June 15, 2022 01:19 PM AEST | By Bhawna Gupta

Ampol (ASX:ALD) plans AU$150M sub note issue, shares fall — Image source: © Vencavolrab | Megapixl.com

More about issue

The issue's net proceeds will be utilised for general company objectives following Ampol's Capital Allocation Framework.

The Subordinated Notes have an unusual sustainability feature in which Ampol's redemption price (or conversion price) is tied to major parts of the company's Future Energy and Decarbonisation Strategy. Ampol's ambition to cut carbon emissions in its Fuels & Infrastructure and Convenience Retail divisions by 2025, as well as a new target to run or control at least 500 AmpCharge or equivalent electric vehicle charging points by 2027, are two examples.

Barrenjoey Markets Pty Limited is the proposed issue's sole structuring adviser, lead manager, and underwriter.

Bottomline

Following the formation of a sustainability-linked loan in 2021, the proposed issue of Subordinated Notes will be Ampol's second sustainable financing effort. These activities reinforce Ampol's commitment to sustainability across the board, especially in terms of its capital management and finance strategy.

Source: © Lovelyday12 | Megapixl.com

Moody's Investors Service expects the Subordinated Notes will obtain a 50% equity credit, bolstering Ampol's credit rating.

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