Ampol Launches A$500M 30-Year Subordinated Notes with 12-Year Non-Call Period
Ampol Limited has launched a A$500 million delayed-draw subordinated notes facility, designed to fund its proposed acquisition of EG Australia and refinance existing debt, offering long-term capital with flexible issuance options.
- A$500 million delayed-draw subordinated notes facility with 13-month availability
- Funds to partly finance EG Australia acquisition and refinance March 2027 notes
- Notes feature 30-year maturity and 12-year non-call period
- Facility fully underwritten by institutional investors
- Innovative delayed-draw structure offers issuance flexibility
Ampol’s Strategic Capital Move
Ampol Limited (ASX – ALD) has announced a significant step in its capital management strategy with the commencement of a A$500 million delayed-draw subordinated notes facility. This new funding mechanism is designed to provide Ampol with long-dated capital while maintaining flexibility in timing and use of proceeds, aligning closely with its ongoing growth and refinancing plans.
The facility’s proceeds are earmarked primarily to support Ampol’s proposed acquisition of EG Australia, a deal currently awaiting clearance from the Australian Competition and Consumer Commission (ACCC). Approximately half of the funds will be allocated to the cash component of this acquisition, while the remainder will be used to refinance an existing A$500 million subordinated notes issue due to be called in March 2027.
Innovative Structure and Investor Confidence
What sets this facility apart is its delayed-draw feature, allowing Ampol to issue the notes in up to two tranches of A$250 million each over a 13-month window ending January 2027. This flexibility is particularly valuable in volatile markets, enabling Ampol to optimise timing based on market conditions and capital needs.
The notes carry a 30-year maturity with a 12-year non-call period, initially paying fixed interest semi-annually before switching to a floating rate. Importantly, the facility has already secured binding underwriting commitments from a cornerstone group of institutional investors, reflecting strong market confidence in Ampol’s credit profile and strategic direction.
Capital Management and Market Implications
Greg Barnes, Ampol’s Group CFO, highlighted the transaction as a proactive approach to capital management, leveraging current attractive market conditions to secure long-term financing. The notes are expected to receive 50% equity credit from Moody’s, consistent with Ampol’s existing subordinated debt, which supports the company’s credit metrics and rating stability.
This move also signals Ampol’s commitment to balancing growth initiatives with prudent refinancing, ensuring the company maintains a robust capital structure as it navigates the complexities of the energy sector and competitive pressures in Australia’s fuel retail market.
Looking Ahead
With the facility’s closing anticipated around 19 December 2025, Ampol’s next steps will be closely watched by investors, particularly regarding the timing of tranche draws and the ACCC’s decision on the EG Australia acquisition. The successful execution of this facility could set a precedent for innovative capital solutions in the sector.
Bottom Line?
Ampol’s flexible notes facility positions it well for strategic growth and refinancing, but regulatory approval remains a key hurdle.
Questions in the middle?
- When will Ampol draw down the tranches, and how will market conditions influence timing?
- What impact will ACCC’s clearance decision have on the acquisition financing and overall strategy?
- How will Moody’s equity credit and refinancing affect Ampol’s credit ratings and cost of capital?
