AusNet International Hybrid Issue Worth €700 million

AusNet International Hybrid Issue Worth €700 million

Australian power company AusNet has issued a €700 million, 60-year international hybrid deal.

The hybrid issue, in the form of non-convertible subordinated notes, is due for a first call in 2026 with maturity set for March 2081.

There is a refinancing element with proceeds from the hybrid issue will be used for general corporate purposes, including redemption of certain other subordinated indebtedness.

Other key features of AusNet’s International Hybrid are:

  • Fixed Rate: 1.625%
  • Subordinated to senior debt;
  • Expected to receive 50% equity credit from Moody’s Investors Service and Standard & Poor’s
  • No equity conversion capability

AusNet Services’ Chief Financial Officer Mark Ellul said in a statement the company’s hybrid security portfolio represented an important part of its long-term capital structure.

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“These issuances provide significant funding flexibility, diversify our capital base, support our credit ratings, and secure a competitive cost of capital to fund our significant growth pipeline,” Mr Ellul said.

The statement said AusNet Services maintained diversified debt maturity profile, accessing funds from a variety of sources. As of 3 March 2021, AusNet Services had approximately AUD1,000M of undrawn committed bank debt facilities and AUD470M of cash on deposit.

A link to the ASX statement can be found here.