Australia's APA raises A$1.25bn unsecured debt

APA, an Australian energy infrastructure firm, has raised A$1.25bn ($800mn) of senior unsecured debt via a syndicated term loan and €500mn in hybrid subordinated capital securities, it said on November 3.

The issuances will be used to replace short-term debt facilities put in place in connection with the recently announced Alinta Energy Pilbara acquisition and for general corporate purposes.

“This funding enables APA to pursue our growth strategy and invest in the energy transition and, ultimately, our ambition to support our customers to decarbonise their operations, particularly in remote-grid generation regions," APA CFO Garrick Rollason said.

APA on August 23 announced its intent to acquire Alinta Energy Pilbara for A$1.7bn. Alinta Energy Pilbara possesses a range of operational assets, including gas and solar power generation, gas transmission, battery energy storage systems, and electricity transmission. Furthermore, it boasts a development pipeline comprising projects related to wind, solar, gas reciprocating engines, BESS, and associated electricity transmission.