QIC’s Pacific Energy increases funding capacity to A$1.2billion to meet demand for decarbonisation initiatives

QIC’s sustainable distributed energy business Pacific Energy has successfully completed a new A$350 million debt facility, increasing its total debt facilities to A$1.2 billion to meet new and existing client demand for decarbonisation initiatives, and to support the company’s ambitious growth plans.

The expanded funding is a significant milestone and further step forward for Pacific Energy’s commitment to providing clean energy solutions and supporting Australia’s energy transition.

This debt facility follows Pacific Energy’s successful debt refinance in August 2022, which saw the overall facility limits increase from $500 million to $860 million.

For this latest financing, 50 per cent (A$175 million) has been allocated as a green loan tranche, specifically designed to finance renewable energy projects that meet Pacific Energy’s Green Finance Framework criteria. The facility also includes two new high-quality lenders to the syndicate, strengthening the overall lending group and bringing the total number of Pacific Energy’s lenders to nine.

Matthew Hall, Partner – Financing, QIC Infrastructure said Pacific Energy’s commitment to decarbonisation and sustainable energy solutions have been a driving force behind its success.

“We have worked closely with Pacific Energy on the establishment of this new debt facility. The new facility positions the business and management team well to continue to deliver on their transformational growth program which is underpinned by customer demand for renewable energy solutions,” Mr Hall said.

QIC acquired Pacific Energy in 2019 on behalf of its institutional investors. QIC’s global investments supporting the energy transition have now grown to A$9.5 billion. QIC‘s energy platform assets aim to invest more than A$15 billion in the energy transition over the next five years.

Pacific Energy is one of Australia’s leading producers of sustainable distributed energy, with a diversified portfolio comprising c. 900MW across 48 sites and five states and territories.

Recently, Pacific Energy also announced the successful design and delivery of four hybrid power systems for Westgold Resources Limited’s gold mining operations at its Tuckabianna, Bluebird, Fortnum and Big Bell facilities. These new hybrid systems replace six diesel power stations and are expected to collectively displace 38 million litres of diesel every year and reduce carbon emissions by up to 57.000 tonnes annually.