APA Group Prices EUR550 Million 10-Year Senior Unsecured Notes at 6.69% Fixed Rate

Anjali Anand

06 November 2026 04:04 PM AEDT

APA Group Prices EUR550 Million 10-Year Senior Unsecured Notes at 6.69% Fixed Rate

Image Source: Krish Capital Pty Ltd

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APA Group (ASX:APA) has priced EUR550 million of 10-year senior unsecured notes at a fixed AUD interest rate of 6.69% per annum, with proceeds to be used to partly fund the early redemption of its EUR650 million debt maturity due in March 2027.

Key Points

EUR550 million (AUD$887 million) of 10-year senior unsecured fixed-rate notes successfully priced.
Fixed AUD interest rate, swapped, is 6.69% per annum.
Final orderbook exceeded EUR1.35 billion, representing approximately 2.5 times the issue size.
A notice has been provided to holders of the EUR650 million March 2027 notes for early redemption at par on 7 December 2026.

Terms of the EUR550 Million Notes

According to the filing, the notes have a principal amount of EUR550 million, equivalent to AUD$887 million, and are structured as 10-year senior unsecured notes with a fixed rate. The fixed AUD interest rate, on a swapped basis, is 6.69% per annum. The transaction attracted support from European and global institutional investors. The final orderbook exceeded EUR1.35 billion, which the filing states represents approximately 2.5 times the issue size.

Early Redemption of 2027 Notes

As per the terms of the EUR650 million notes maturing in March 2027, APA Group has provided a notice to holders for the early redemption of those notes at par on 7 December 2026. The filing states that proceeds from the newly priced notes will be used to partly fund this redemption. The filing also notes the redemption is characterised as a Make Whole redemption in line with the terms of the existing 2027 notes.

CFO Commentary on Capital Management and Credit Ratings

APA Group Chief Financial Officer Garrick Rollason said the transaction proactively addresses the March 2027 debt maturity, extends the debt maturity profile, and maintains a diverse funding base. Rollason stated the company's balance sheet is positioned to fund its approximately $3.5 billion organic growth pipeline over FY27 to FY29. He added that APA remains focused on maintaining its BBB/Baa2 investment-grade credit ratings and will continue to be disciplined in allocating capital.

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