AquaSure refinances desal project debt with new USPP

Published October 4th, 2018

AquaSure – the owner of the 411,000m3/d Melbourne desalination plant in Australia – is refinancing some of the senior debt it took out to finance the construction of the facility.

Through its AquaSure Finance funding vehicle, the borrower is readying a pair of 15-year bonds in the US private placement market: a fixed-rate US$-denominated piece and a floating-rate A$ tranche. The US$250 million proceeds from the offering will partially refinance A$362 million of bank debt that is due to mature in October 2020.

The project company’s credit quality was enhanced at the end of last year after it completed electrical repairs at the plant, and this will improve further in October 2019, when the State of Victoria assumes the risk of non-performance by AGL Energy, the plant’s electricity provider.

The desal plant is understood to be operating at capacity to deliver an order of 15 million m3 of water in fiscal 2019.