SPAusNet – BT

SP AusNet seeking loan of A$320m to refinance debts

AUSTRALIAN power firm SP AusNet said yesterday that it is looking to borrow another A$320 million (S$415 million) this year to refinance its debts, as borrowing costs rise amid a tight credit market.

The firm, which signed a A$1.55 billion loan with a syndicate of 12 banks in February, told Reuters that it will focus on organic growth, after dropping plans in December to pay parent Singapore Power A$8.3 billion for the assets of delisted Australian energy firm Alinta due to concerns over high borrowing costs.

‘We won’t be relooking at those assets as we speak. However we’ve agreed to look at ways for the two organisations to cooperate,’ Nino Ficca, managing director of dual-listed SP AusNet, said in an interview in Singapore.

Mr Ficca said he hopes to complete those discussions this year, and the two firms could collaborate in areas such as joint procurement, and by combining their backroom services. SP AusNet owns and operates power transmission networks in Victoria state.

The company’s February loan of A$1.55 billion was led by Citigroup, Commonwealth Bank of Australia, nabCapital, Royal Bank of Scotland and Westpac Banking Corp. — Reuters

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