APA prices EUR550 million notes to refinance 2027 maturity
APA Group (ASX: APA) has successfully priced EUR550 million of 10-year senior unsecured notes, allowing the proactive refinancing of its EUR650 million debt maturity due in March 2027. The EUR550 million debt raise was announced on 6 November 2026.
The final orderbook exceeded EUR1.35 billion, representing approximately 2.5 times the issue size. The transaction attracted strong support from European and global institutional investors.
The raise addresses the March 2027 maturity well ahead of time. Chief Financial Officer Garrick Rollason set out the company’s reasoning.
Garrick Rollason, Chief Financial Officer
“The strong support for this transaction reflects continued confidence from global debt investors in APA and the quality and resilience of our business.”
“This transaction is consistent with our disciplined approach to capital management. It proactively addresses our March 2027 debt maturity, extends our debt maturity profile and maintains a diverse funding base…”
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Key terms of the notes
The terms disclosed for the notes are set out below.
The euro issue follows an earlier $1.5 billion debt raise in the Australian market, which paired hybrid subordinated capital securities with domestic senior notes and drew strong local institutional demand.
| Term | Detail |
|---|---|
| Principal amount (EUR) | EUR550 million |
| Principal amount (AUD) | $887 million |
| Format | 10-year senior unsecured notes |
| Fixed or floating | Fixed |
| Fixed AUD interest rate (swapped) | 6.69% p.a. |
How the proceeds fund the 2027 notes redemption
Under the terms of the EUR650 million notes maturing in March 2027, notice has been provided to holders for the early redemption of the 2027 notes at par on 7 December 2026. The source describes this as a Make Whole redemption.
The proceeds from the new notes will be used to partly fund the redemption.
Rollason said the transaction extends APA’s debt maturity profile and maintains a diverse funding base. He also addressed the balance sheet outlook.
Garrick Rollason, Chief Financial Officer
“…Our balance sheet is positioned well to fund our ~$3.5 billion organic growth pipeline over FY27 to FY29. We remain focused on maintaining our BBB/Baa2 investment-grade credit ratings and will continue to be disciplined in allocating capital.”
What happens next for APA
- Early redemption of the EUR650 million 2027 notes at par on 7 December 2026, following notice provided to holders. The proceeds from the new notes will partly fund the redemption.
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