Hogan Lovells advises J.P. Morgan, BNP Paribas, BofA Securities, ANZ, Mizuho and Westpac as Managers on the issuance of a EUR500m guaranteed subordinated hybrid notes by APA Infrastructure Limited

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.”

For more information on how Hogan Lovells can support clients in their debt capital markets activity, please get in touch with Andy Ferris or Leon Yap.

About the Hogan Lovells DCM practice in Asia Pacific

The APAC dedicated debt capital markets (DCM) team has vast experience in advising issuers, underwriters, and corporate service providers on complex, market-leading debt deals. 

Our practice covers the full range of domestic and international straight debt and structured bond transactions, including standalone issuance, debt programmes, equity-linked securities, bespoke private placements, and sustainable and impact financing. Our clients include major financial institutions and corporates looking to obtain funding from the capital markets and the underwriters and service providers facilitating those debt raisings.

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“The team at Hogan Lovells are responsive to the project's needs. They are able to relate to our industry and related key metrics.” Chambers Asia-Pacific 2023, Capital Markets: Debt – Asia-Pacific Region

“Hogan Lovells Lee & Lee provides professional service with the best-in-class legal advisors and partners. They have strong industry experience, diligent and empathetic associates … and it is always great to collaborate with them in getting work done with strict timelines.” Legal 500 Asia-Pacific 2023, Capital Markets: Equity and Debt: Foreign Firms