Pacific Energy and QIC complete $2b refinancing and equity raise

Over $500m of the funding has been allocated to green loans.

Pacific Energy and QIC have completed a $2b refinancing and equity raise, fuelling its decarbonisation and sustainability efforts.

In a statement, Pacific Energy said it upsized its debt facility by $400m, bringing its total debt capacity to $1.6b. It was able to tap seven new lenders, joining the existing syndicate to form a 15-bank 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,” the company said

Notably, $550m of the syndicated facilities have been allocated to green loan tranches.

Pacific Energy said will also launch an Asian Term Loan (ATL) to support its long-term capital strategy.

The refinancing was supported by QIC and its institutional clients, culminating in a successful equity raise of $370m. 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 $500m.

“The new debt facility and equity raise provide Pacific Energy with approximately $1b of growth capital,” the company said, noting that this will also allow for future expansion.