The key features of the EUR500 million guaranteed subordinated hybrid notes include:

• a 60-year maturity redeemable at par from the first call date in 2029 and on each interest payment date thereafter
• a coupon of 7.125% per annum up to the first call date (subject to interest rate resets and step ups if not called at that time)
• the notes being subordinated to senior debt with no equity conversion features

The notes issuance was strongly supported by Euro bond investors across Europe, the UK and Asia, represented a rare hybrid issuance by an Australian issuer and was described in the financial press as a “rare achievement” and a “blowout subordinated offering”. The securities are listed on the Singapore Exchange Securities Trading Limited.

“This funding enables APA to pursue our growth strategy and invest in the energy transition and, ultimately, our ambition to support our customers to decarbonise their operations, particularly in remote-grid generation regions.”, – APA CFO Garrick Rollason said.

The Hogan Lovells team was led by Singapore debt capital markets partner Andy Ferris and counsel Leon Yap with support from associates Felicia Chen and Audrey Koh.

Commenting on the transaction, Andy said: “We are proud to have had the opportunity to support this high-quality group of banks on APA’s hybrid issue, representing one of the most significant offshore bond issuances by an Australian issuer this year. It was our pleasure working with our clients and the APA team to help secure such a successful outcome. We look forward to seeing more hybrid bond issuance in this region.”