Ampol successfully issues $500 million subordinated notes

Ampol has announced a successful $500 million subordinated notes issue to strengthen its balance sheet and boost financial flexibility.

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Key points

  • Ampol Ltd announced the successful pricing of A$500 million subordinated notes due 2055, paying a fixed 5.85% interest until 2034, to diversify funding and improve financial flexibility.
  • The capital raised will repay existing debt, support the company's balance sheet, and maintain its strong credit rating, with the transaction attracting high demand from investors in Australia, New Zealand, and Asia.
  • Moving forward, Ampol aims to continue optimising its financial structure, ensuring diverse funding access while supporting its growth and operational strategies.

The Ampol Ltd (ASX: ALD) share price is in the spotlight after the company announced the successful pricing of $500 million in new subordinated notes, supporting its ongoing capital management strategy.

What did Ampol report?

  • Priced A$500 million of subordinated notes, due 2055, to wholesale investors
  • Notes will pay 5.85% fixed until January 2034, then move to a floating rate
  • Proceeds to repay debt and for general corporate purposes
  • Transaction intends to refinance A$500 million notes callable in March 2026
  • Expected to receive 50% equity credit from Moody's Investors Service

What else do investors need to know?

The new subordinated notes form part of Ampol's strategy to diversify its funding sources and boost financial flexibility. The offer attracted significant demand from both new and existing investors across Australia, New Zealand, and Asia.

Settlement for the notes is expected on or around 30 October 2025. The notes are subordinated to senior debt but senior to ordinary and preferred shares, providing a middle layer of capital support.

What did Ampol management say?

Greg Barnes, Group Chief Financial Officer, said:

We're delighted with the ongoing support from our fixed income investor base. This transaction marks another successful issue of subordinated notes for Ampol, attracting significant demand from a mix of new and existing investors across Australia, New Zealand and the Asian region. The notes further diversify our capital sources, increase our financial flexibility and support our credit rating.

What's next for Ampol?

Ampol will use the capital raised to strengthen its balance sheet, repay existing debt, and support its capital allocation framework. The company remains focused on maintaining a strong credit rating and ensuring access to diverse funding as part of its long-term strategy.

Looking ahead, Ampol will continue to review its capital management approach and look for opportunities to optimise its financial structure while supporting growth and ongoing operations.

Ampol share price snapshot

Ampol shares have risen 10% over the past 12 months, matching the S&P/ASX 200 Index (ASX: XJO).

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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