Queensland Investment Corporation (QIC) has completed a A$1.97 billion (US$1.27 billion) financing package for its energy unit, Pacific Energy Group, for capital expenditure purposes.
The biggest share of the funding, or A$1.6 billion, was secured by refinancing debt through a syndicate of 15 banks, and the balance A$370 million were new equity commitments from investors in Australia, Asia and North America.
“This provides Pacific Energy with over A$1 billion of financial capacity for its ongoing growth capex programme,” QIC, which is owned by the state government of Queensland, says in a statement on May 28. The identity of the new investors and the banks that refinanced the debt was not disclosed.
Pacific Energy mainly focuses on building remote power stations with a contracted capacity of 946 megawatts across 48 sites in Australia.
According to Ross Israel, QIC’s head of infrastructure, the fundraising represented a “distinct opportunity to participate in Australia’s ongoing energy transition”.
“Having invested in the energy transition thematic for over a decade, QIC has a deep understanding of the structural shifts reshaping Australia’s energy value chain, and we continue to see compelling and differentiated opportunities to deploy capital at scale,” he says.
Brisbane-based QIC had around A$91 billion of assets under management in October 2023, the latest publicly available figure.
