QIC secures $2b financing for remote energy platform Pacific Energy
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The news: Queensland Investment Corporation (QIC) has completed a $370 million equity raise and $1.6 billion debt refinancing for its remote energy platform Pacific Energy Group.
The numbers: Queensland government-owned QIC said it secured new equity commitments from investors across Australia, Asia and North America, in addition to a new refinancing facility from a group of 15 banks.
Pacific Energy, which has contracted capacity of 946 megawatts across 48 sites, now has over $1 billion of financial capacity for its ongoing growth capital expenditure program.
The latest equity raise takes the total amount of equity capital raised for Pacific Energy over the past 18 months to $500 million.
The context: QIC, which acquired Pacific Energy in 2019, said the raise makes the company well positioned to capitalise on customer demand and deliver its growth pipeline, which includes a range of renewable and hybrid projects in Western Australia and the east coast.
Seven new lenders — Société Générale, ANZ, Export Finance Australia, DNB Bank, China Construction Bank, Bank of Communications, and DBS — joined the 15-bank lending group.
The existing syndicate includes Westpac, 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.
What they said: "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," Pacific Energy CEO Jamie Cullen said.
"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."
The source: QIC media release
