QIC’s Pacific Energy back in front of banks

QIC’s remote power play Pacific Energy looks like it has a big war chest for new projects, after landing fresh debt facilities worth $860 million.

Lending banks said the deal saw Pacific Energy refinance its existing $500 million debt facility with Westpac, Canadian Imperial Bank of Commerce and Industrial and Commercial Bank of China into a bigger multi-tranched loan maturing in three and five years.

Pacific Energy now has $460 million maturing in 2025 and another $400 million in 2027, bankers said. Its three existing banks tipped in capital, along with new lenders including Mizuho and Bank of China in a deal that closed a few weeks ago.

The debt was written to QGIF Swan Bidco, which was one of the entities QIC set up to acquire the remote power company in 2019.

The entity initially sourced $350 million debt to bankroll QIC’s acquisition in December 2019, before increasing the facility limit to $500 million last September.

The group now operates five electricity generation business, including remote mine sites group Kalgoorlie Power Systems, hydropower station owner Pacific Energy Victorian Hydro and NovaPower, which owns a gas fired power station at Traralgon, in Victoria.

It comes as Pacific Energy added green hydrogen to its offering in traditional diesel and gas generation, as well as solar, wind and battery storage.