Ampol Limited’s A$150 Million Sustainability-Linked Notes Offer

Herbert Smith Freehills has advised Ampol Limited on the deal.

Ampol Limited (Ampol) issued A$150m sustainability-linked subordinated floating rate notes that are convertible to ordinary shares in Ampol (if not redeemed at the first call date).  The notes were issued to wholesale investors.

Ampol’s sustainability-linked hybrid, which receives 50% equity credit from Moody’s Investors Service, is thought to be the first of its kind in global markets. 

Ampol is an independent Australian company and one of the nation’s leaders in transport fuels and convenience retail.

This is Ampol’s third hybrid issuance in the Australian wholesale market in 18 months: it also issued subordinated notes convertible to ordinary shares in Ampol in December 2021 and December 2020.  Ampol’s sustainability-linked subordinated notes are the second sustainable financing initiative completed by the company, following the establishment of a sustainability-linked loan in 2021. 

The proceeds of the issuance will be used by Ampol for general corporate purposes and in line with its Capital Allocation Framework.

The Herbert Smith Freehills team was led by partner Patrick Lowden (Picture) and executive counsel Josie Essery.

Involved fees earner: Josie Essery – Herbert Smith Freehills; Patrick Lowden – Herbert Smith Freehills;

Law Firms: Herbert Smith Freehills;

Clients: Ampol;

Giulia Di Palma

Author: Giulia Di Palma