Ampol (ASX:ALD) prices $500m subordinated notes

Petroleum giant Ampol (ASX:ALD) has priced an offering of $500 million subordinated notes due in 2081 to wholesale investors in the domestic fixed income market.

The company said the subordinated notes are an effective long term source of capital and will form part of its ongoing capital management strategy. Net proceeds may be used to partly fund Ampol’s acquisition of Z Energy, and other general corporate purposes.

The subordinated notes have 60-year maturity with interest payable quarterly at a floating rate of three-month bank bill swap rate plus a margin of 3.4 per cent.

Settlement is expected to occur on December 2 this year.

Shares in Ampol (ASX:ALD) are trading 3.3 per cent lower at $29.23.