Pacific Energy secures AUD 2 billion funding for expansion of renewable and hybrid projects
15-bank syndicate includes 7 new entrants, providing the company with extended maturities on competitive terms
Close to AUD 500 million of the syndicated facilities have been allocated to green loan tranches
Investment manager Queensland Investment Corporation (QIC) and its distributed energy portfolio company Pacific Energy have raised AUD 2 billion ($1.29 billion) in refinancing and equity raise for the latter. The new debt facility and equity raise provide Pacific Energy with close to AUD 1 billion ($643.3 million) of growth capital that it will invest in its future expansion.
With this round, Pacific Energy has upsized its debt facility by AUD 400 million ($257.32 million) bringing its total debt capacity to AUD 1.6 billion ($1.03 billion). QIC raised an additional AUD 370 million ($238 million).
Nearly AUD 500 million ($321.64 million) of the syndicated facilities have been allocated to green loan tranches. The company will also launch an Asian Term Loan (ATL) to support its long-term capital strategy.
Pacific Energy says this successful close gives it long-term financial flexibility and reduced refinancing risk since it was achieved on more competitive terms. This includes reduced funding cost and extended debt maturities with diversified tenors of 5,7 and 10 years.
It raised the proceeds from a 15-bank strong lending group that comprised 7 new lenders including Société Générale, ANZ, Export Finance Australia, DNB Bank, China Construction Bank, Bank of Communications, and DBS.
They joined the existing syndicate of Westpac Banking Corporation, National Australia Bank, Industrial and Commercial Bank of China, Canadian Imperial Bank of Commerce, Sumitomo Mitsui Banking Corporation, Mizuho, Oversea-Chinese Banking Corporation and Bank of China.
“This boost to our growth capital puts us in a strong position to advance our robust pipeline of renewable energy projects and take full advantage of the increasing opportunities in Australia’s transition to a low-carbon economy,” said Pacific Energy CEO Jamie Cullen.
Acquired by the QIC in 2019, Pacific Energy integrates solar, wind, green hydrogen and battery energy storage systems (BESS) into new and existing remote power systems. It currently has owned-and-operated assets at 48 sites nationally and 946 MW of contracted capacity under management.
Senior Principal, QIC and Pacific Energy Asset Manager and Board Member Matthew Zwi shared, “With this growth capital raise completed and the business competitively refinanced, Pacific Energy is well positioned to capitalise on customer demand and deliver its growth pipeline, which includes a range of renewable and hybrid projects in Western Australia as well as on the East Coast.”