Ampol's successful financial strategy

Ampol (ASX:ALD) has priced A$600 million in subordinated notes due in 2054, targeting wholesale investors. Settlement is anticipated around December 11, 2024. Proceeds will refinance debt and support general corporate purposes, aligning with Ampol's Capital Allocation Framework. Moody's expects a 50% equity credit for these hybrid notes.

Ampol's strategic capital management

Ampol Limited has achieved a significant milestone by securing A$600 million in subordinated notes, reinforcing its capital strategy. These notes aim to diversify Ampol's funding sources and enhance financial flexibility, while also supporting its credit rating. With a 30-year maturity and interest based on 3-month BBSW plus a margin, the notes offer options for redemption and conversion. The issuance underscores Ampol's commitment to financial stability and strategic growth, reflecting its dedication to managing capital effectively. The move aligns with their Capital Allocation Framework and supports refinancing upcoming debt maturities.

Executive insights on the note issuance

The strong support from both new and existing investors marks another successful issuance following our last in 2022. The new funding is intended to diversify capital sources, enhance financial flexibility, and support Ampol's credit rating.