Pacific Energy and QIC have successfully completed a $2 billion refinancing and equity raise for the energy solutions provider, underscoring their commitment to sustainable growth and financial stability.
Pacific Energy has upsized its debt facility by $400 million, bringing its total debt capacity to $1.6 billion. Seven new lenders, including Société Générale, ANZ, Export Finance Australia, DNB Bank, China Construction Bank, Bank of Communications, and DBS, joined the existing syndicate, 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, to form a 15-bank strong lending group.
This refinancing was achieved on more competitive terms, including a reduced funding cost and extended debt maturities with diversified tenors of 5, 7, and 10 years. These enhancements provide Pacific Energy with long-term financial flexibility and reduce refinancing risk.
Notably, $550M of the syndicated facilities have been allocated to green loan tranches, reinforcing the company’s commitment to decarbonisation and sustainable investment initiatives.
To further enhance its lending diversity, Pacific Energy will also launch an Asian Term Loan (ATL), to support its long-term capital strategy.
The successful refinancing is complemented with continued support from QIC and its institutional clients, culminating in a successful equity raise of $370 million. The new equity commitments from investors across Australia, Asia and North America take the total amount of capital raised over the past 18 months to $500 million.
The new debt facility and equity raise provide Pacific Energy with approximately $1 billion of growth capital, positioning the company for future expansion.
Jamie Cullen, Chief Executive Officer, Pacific Energy
“The successful upsizing of Pacific Energy’s debt facilities and equity raise mark a significant milestone in supporting our strategic growth ambitions, including our continuing east coast expansion.”
“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.”
“We’re in a leading position to deliver long-term value for our customers, and at the same time, move the dial in a meaningful way towards a more sustainable future.”
Todd Perkins, Chief Financial Officer, Pacific Energy
“This syndication drew strong interest from a diverse group of lenders, and we’re pleased to see the firm backing from both our existing lenders and seven new banks of Pacific Energy’s growth strategy.”
“The significant lender demand and improved pricing reflects strong market confidence in our business model and the strength of our portfolio.”
“These transactions enhance our financial strength and flexibility, as well as provide a lower cost of capital to invest in sustainable energy solutions for our clients’ decarbonisation activities.”
“We thank our debt and legal advisers Gresham and Allens respectively, for the valuable support provided throughout the process.”
Matthew Zwi, Senior Principal, QIC, Pacific Energy asset manager and board member
“Since QIC’s acquisition in 2019, Pacific Energy has invested heavily in its capabilities through a series of value-chain acquisitions, creating a highly specialised, vertically integrated remote energy platform with full in-house capability to design, construct, commission and operate hybrid renewable power projects.”
“The combination of these specialised capabilities and significant levels of prevailing demand for renewable and hybrid solutions in Australia’s remote energy sector have driven material growth in Pacific Energy’s portfolio.”
“As the business has grown, it has also matured as an infrastructure investment through its increased portfolio scale and diversification and long tenor availability-based offtakes with inflation protection.”
“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.”
