Ampol Ltd (ASX: ALD) share price is in focus today after the company announced a new A$400 million delayed-draw subordinated notes facility, following successful previous issues in 2025. This new facility supports Ampol's ongoing capital management and provides flexible, long-term funding options.
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What did Ampol report?
- Launched a wholesale offer of a new A$400 million delayed-draw subordinated notes facility
- Facility can be drawn in two tranches: A$250 million and A$150 million
- ~9-month and ~24-month availability periods for the two tranches, respectively
- 12-year non-call period and a final maturity in 2058
- Net proceeds earmarked to refinance existing subordinated notes callable in 2027 and 2028
- Facility fully underwritten by a cornerstone institutional investor group
What else do investors need to know?
The delayed-draw feature means Ampol can access funding flexibly as needed, with the option to issue the facility in two parts and the right to cancel the second tranche if desired. The subordinated notes are structured to secure long-term capital at fixed pricing, supporting stability in Ampol's future refinancing plans.
Moody's Investors Service is expected to assign 50% equity credit to the new notes, in line with Ampol's existing subordinated debt. The offer is targeted only at institutional investors, with a closing date around 9 July 2026, subject to typical conditions.
What did Ampol management say?
Group Chief Financial Officer Greg Barnes said:
We're delighted to announce this new financing facility, which utilises the same delayed-draw feature from our previous issue in December 2025. Investor commitments and issue pricing will be fixed upfront. Market conditions remain attractive and provide an opportune time to secure long-term capital, which is linked to our future hybrid refinancing initiatives. The delayed-draw feature gives Ampol significant flexibility with regards to issue timing, as well as use of proceeds and cancellation rights. The transaction is another example of our proactive approach to capital management.
What's next for Ampol?
Ampol plans to use the facility to proactively refinance subordinated notes due in 2027 and 2028, aiming to optimise its balance sheet and preserve flexibility for future funding needs. Management is focused on securing stable, long-term capital to support its ongoing growth and sustainability initiatives, while enhancing its capital management strategy.
Ampol share price snapshot
Over the past 12 months, Ampol shares have risen 29%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.
