APA INFRASTRUCTURE LIMITED — Capital/Financing Update 2023

Nov 2, 2023

APA Group Limited ACN 091 344 704 | APA Infrastructure Trust ARSN 091 678 778 | APA Investment Trust ARSN 115 585 441 Level 25, 580 George Street Sydney NSW 2000 | PO Box R41 Royal Exchange NSW 1225 Phone +61 2 9693 0000 | Fax +61 2 9693 0093 APA Group | apa.com.au

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3 November 2023

ASX ANNOUNCEMENT

APA Group (ASX: APA) APA Infrastructure Limited (ASX: AP2)

THIS ANNOUNCEMENT IS NOT AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TO BUY SECURITIES IN THE UNITED STATES OR ANY OTHER JURISDICTION

APA GROUP SUCCESSFULLY COMPLETES AUD $1.25B SYNDICATED TERM LOAN AND PRICES €500M IN HYBRID SUBORDINATED CAPITAL SECURITIES

Leading Australian energy infrastructure business APA Group (ASX:APA) has successfully raised AUD $1.25 billion of senior unsecured debt via a syndicated term loan and €500 million (AUD $824 million) in hybrid subordinated capital securities (the issuances ).

These issuances further strengthen APA’s balance sheet and provide a competitive cost of capital to fund our growth opportunities. They increase the diversity in our capital structure, delivering APA a new source of longterm funding from deep and highly liquid capital markets, and provide additional liquidity and credit rating benefits.

The issuances will, in part, replace the short-term debt facilities put in place in connection with the Alinta Energy Pilbara acquisition on 23 August 2023 as well as be used for general corporate purposes.

Post completion, the average cost of debt across APA’s entire debt portfolio on an annualised basis will be 4.98%.

Syndicated term loan
Issuance	7-year	10-year
Issuance amount	$750 million	$500 million
Fixed AUD interest rate (swapped)	6.75%	7.18%
Hybrid capital securities
Issuance	60-year
Issuance amount Issuance amount (swapped)	€500 million AUD ~$823 million
Fixed AUD interest rate until February 2029 (swapped)	9.32% per annum

“We are pleased with the strong support from our financiers, banks, and bond investors. It illustrates the confidence the market has in APA, including the acquisition of the Alinta Pilbara business,” APA CFO Garrick Rollason said.

“This funding enables APA to pursue our growth strategy and invest in the energy transition and, ultimately, our ambition to support our customers to decarbonise their operations, particularly in remote-grid generation regions.

“We remain focussed on ensuring our debt funding is well diversified with the ability to access funds from a variety of markets.”

Syndicated Term Loan

Strong support from more than 30 new and existing financiers enabled APA to establish a new syndicated term loan facility comprised of a 7-year AUD $750 million tranche and a 10-year $500 million tranche. Both tranches have been swapped into fixed rates. The loan syndicate includes leading Australian and Asian banks.

Hybrid Securities

The €500 million in hybrid subordinated capital securities was also strongly supported by Euro bond investors across Europe, the UK and Asia. The offer was competitively priced and significantly oversubscribed, reinforcing support for both APA and hybrid securities. The securities will be listed on the Singapore Exchange.

Moody’s and S&P are expected to treat these securities as 50 per cent equity and 50 per cent debt for the purposes of assigning credit ratings to APA’s senior debt.

The tax deductibility of the hybrid and the 50 per cent equity credit applied by the rating agencies ensures the hybrid represents a competitive cost of capital. APA expects hybrids to be a long-term feature of our capital structure.

Key features of the hybrid capital securities include:

• 60-year maturity redeemable at par from the first call date in 2029 and on each interest payment date thereafter

• face value of €500 million and a coupon of 7.125% per annum up to the first call date (subject to interest rate resets and step ups if not called at that time)

• subordinated to senior debt and no equity conversion features

• swapped back in AUD to the first call date

ENDS

Authorised for release by Amanda Cheney

Company Secretary APA Group Limited

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For further information, please contact:

Investor enquiries: Media enquiries: Rebecca Culbertson Michael Cox Head of Investor Relations Head of Media Relations & Financial Communications Telephone: +61 2 9547 4737 Telephone: +61 2 8044 7002 Mob: +61 487 565 628 Mob: +61 429 465 227 Email: Rebecca.Culbertson@apa.com.au Email: Michael.Cox@apa.com.au

About APA Group (APA)

APA is a leading Australian Securities Exchange (ASX) listed energy infrastructure business. We own and/or manage and operate a diverse, $25 billion portfolio of gas, electricity, solar and wind assets. Consistent with our purpose to strengthen communities through responsible energy, we deliver approximately half of the nation’s gas usage and connect Victoria with South Australia, Tasmania with Victoria and New South Wales with Queensland through our investments in electricity transmission assets. We also own and operate renewable power generation assets in Australia, with wind and solar projects across the country. APA Infrastructure Limited is a wholly owned subsidiary of APA Infrastructure Trust and is the borrowing entity of APA Group. For more information visit APA’s website, apa.com.au.

Disclaimer

The securities referred to in this announcement have not been and will not be registered under the Securities Act of 1933 of the United States of America (the “Securities Act”), or with any securities regulatory authority of any state or other jurisdiction of the United States, or any other jurisdiction. The securities referred to herein are being offered and sold only outside the United States to persons who are not US Persons (as defined in Regulation S under the Securities Act) pursuant to and in accordance with Regulation S under the Securities Act. There will be no public offer of the securities in the United States or any other jurisdiction. The Subordinated Notes will not be offered in Australia except to persons who are not "retail clients" as defined in Chapter 7 of the Corporations Act and in respect of whom offers of securities and financial products may be made without disclosure under Parts 6D.2 or 7.9 of the Corporations Act.

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