AGL's looming capital crunch set to trigger asset sales
The gentailer is racing to fund the batteries and wind farms that will replace its coal power stations, which are set to close. But it may need to sell upcoming developments to fund the transition.
AGL Energy has floated plans to sell development assets to raise almost $3 billion required over the next three years to develop an $800 million battery and build out its 900 MW wind generation portfolio.
Briefing analysts after delivering a 9% fall in full-year EBITDA on Wednesday, chief executive Damien Nickless said AGL may sell post-final investment wind project developments if required to raise additional capital to fund the batteries.
When pressed on the status of a sale of its 20% interest in the Tilt Renewables wind energy platform, for which AGL hired Bank of America infrastructure banker Sam Watson to advise on, Nickless did not respond.
“Our capital recycling [is] probably more focused on our development pipeline. We've got some very promising wind developments. It's those types of assets that we would make a final investment decision on, then [sold] at some point yet to be determined.”
