KKR injects $400m into Ampol

KKR has provided Ampol with $400 million in funding through a subordinated notes facility, to help the energy retailer with its refinancing initiatives.

The transaction was supported by KKR's private credit and insurance platforms.

KKR partner and head of Asia credit and markets Diane Raposio said: "We are focused on providing flexible capital to high-quality companies as they pursue their strategic objectives."

KKR said along with private credit strategies, its Asia Pacific credit platform seeks to provide solutions to high-quality companies, entrepreneurs and sponsors.

Listed on the ASX, Ampol operates a fuel supply and marketing value chain in Australia that encompasses the Lytton refinery in Queensland, a national network of terminals and pipelines, and a retail footprint of approximately 1700 sites.

"Ampol is an established, strong investment-grade business with a long operating history and a sophisticated approach to capital management. We are pleased to partner with Ampol on this financing, building on KKR's track record in the ANZ region and across Asia Pacific," Raposio said.

KKR has also provided financing solutions to Australian pharmaceutical and fintech businesses such as DBG Health, Family Doctor and Lendi.

Ampol has the flexibility to issue the subordinated notes in two tranches of $250 million with a nine-month availability period and $150 million with a 24-month availability period respectively.

Ampol noted the facility will be used to partly refinance the subordinated notes callable in March 2027 and fully refinance the sustainability-linked subordinated notes callable in June 2028.

"We are delighted with the significant support received from KKR on this occasion, and our collaboration with Temasek-backed Clifford Capital in arranging the transaction with our advisers," Ampol Group chief financial officer Greg Barnes said.

Since 2019, KKR has committed more than US$9.1 billion across 63 credit investments under its Asia Pacific Credit strategy, accounting for a total transaction volume of more than US$28.4 billion.