Channel refinances bank debt

channelnz.com


NZX RELEASE
12 November 2024

Channel refinances bank debt
Channel Infrastructure NZ Limited (NZX:CHI) announces it has entered into documentation to refinance its
bank facilities reducing financing costs, increasing total facility limits and extending the tenor. This supports
lowering Channel Infrastructure’s cost of capital to align with an infrastructure business underpinned by long-
term customer contracts with strong counterparties.

On completion of the refinancing, Channel Infrastructure will have increased its total bank facilities to $235
million (an increase of $30 million) providing further liquidity as it continues to execute on its growth strategy.
Channel remains committed to targeting credit metrics consistent with a shadow BBB+ credit rating
1
and
remaining within its target leverage range of 3 – 4 times EBITDA.

Channel has expanded its banking group to include Industrial and Commercial Bank of China (New Zealand)
Limited, in additional to its existing lenders: ANZ Bank New Zealand Limited, ASB Bank Limited, Bank of New
Zealand Limited, China Construction Bank Corporation, New Zealand Branch, and Westpac New Zealand
Limited.

As a result of the refinancing, the all-in cost of drawn facilities reduces by 0.6% and the majority of Channel’s
extended facilities have a tenor of 5 years. Channel’s debt facilities total $435 million (including retail bonds)
and the weighted average bank debt maturity increases from 2 years to 4.75 years. The refinancing does not
change the existing covenants, undertakings or negative pledge arrangements with Channel’s lenders or
bondholders.

For details on the debt maturity profile and fixed debt profile refer to Appendix I.

- ENDS -


1
Neither Channel Infrastructure nor its listed Retail Bonds have a credit rating (either public or private).

channelnz.com
Appendix I – Debt maturity profile



Authorised by:
Chris Bougen
General Counsel and Company Secretary

Investor Relations contact:
Anna Bonney
investorrelations@channelnz.com

Media contact:
Laura Malcolm
communications@channelnz.com

0
50
100
150
200
250
300
350
20252026202720282029
$M
Debt maturity profile
Bank debtRetail bonds
-
25
50
75
100
125
150
175
200
225
250
275
300
Nov 24May 25Nov 25May 26Nov 26May 27Nov 27May 28Nov 28May 29Nov 29
$M
Fixed interest profile
Retail bonds (CHI030)Interest rate swapsRetail bonds (CHI020)
5.8% p.a.
3.0% p.a.
6.75% p.a.

channelnz.com
About Channel Infrastructure NZ
Channel Infrastructure is New Zealand’s largest fuel import terminal, storing and distributing 40% of New
Zealand’s transport fuel, including 80% of New Zealand’s jet fuel. We receive, store, test and distribute
petrol, diesel, and jet fuel that our customers import and supply to Auckland and Northland.
Fuel is imported via our deep-water harbour and jetty infrastructure at Marsden Point and stored in more
than 290 million litres of contracted storage tanks on site. The fuel is then distributed via our 170-kilometre
pipeline to Auckland, or by our customers (bp, Mobil, and Z Energy) via truck into Northland. We underpin
the resilience of New Zealand’s fuel supply chain with our tank capacity, which enables increased storage of
fuel in New Zealand, and through efficient, low-emission distribution of the fuel into the Auckland market.
Given our proximity to Auckland, and critical role in the jet fuel supply chain, Channel is well positioned to
support the renewable fuel transition in New Zealand.
Our plan for growth includes supporting fuel resilience for New Zealand through additional fuel storage on
our site, unlocking the strategic value of the Marsden Point Energy Precinct Concept which reflects the
significant role Channel could play in supporting New Zealand’s energy transition – through potential
opportunities including supporting the manufacture of lower-carbon future fuels, as well as a range of
potential energy security opportunities, and exploring expansion beyond Marsden Point through the
acquisition of other terminals infrastructure in New Zealand.
Channel Infrastructure’s wholly-owned subsidiary, Independent Petroleum Laboratory Limited, provides fuel
quality testing services throughout New Zealand.
For more information on Channel Infrastructure, please visit: www.channelnz.com