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Australian APA Group acquires debt interest in Basslink [free access]

November 22, 2021

Australian energy infrastructure company APA Group, has recently acquired a stake in the debt of Keppel Infrastructure Trust's (KIT) Basslink—the Tasmania–Victoria interconnector, and is interested in buying the link.

 

Basslink Pty Limited had already gone into voluntary administration earlier this month due to ongoing disputes with its customer, Hydro Tasmania, as well as an unsuccessful sale process with APA. Basslink owns and operates the 370-km high voltage direct current (HVDC) interconnector, which can carry 500 MW of electricity both ways between Tasmania and Australia’s National Electricity Market.

 

APA purchased a debt interest in Nexus Australia Management Proprietary Limited, Basslink's borrowing entity. In exchange for a discount, the energy infrastructure group acquired an unspecified stake in the debt, which has a face value of AUD99 million.


APA has also expressed interest in buying Basslink from the receivers and managers. If APA is successful, it plans to work with stakeholders such as Hydro Tasmania, the state of Tasmania, and the Australian Energy Regulator (AER) to make Basslink a regulated asset.

 

(AUD1=USD0.71)