Origin Energy to raise US$1 billion

Origin Energy is looking at the prospect of raising US$1 billion in equity as a means to fund its share of the Australia-Pacific Liquefied Natural Gas (APLNG) project while keeping its balance sheet in check. The APLNG project will cost US$20 billion and Origin has a 37.5% stake worth US$8.5 billion. According to analysts the company would need to source another US$1 billion in funds to keep its current credit rating. The company has flagged the prospect of selling down its position in APLNG, as well as the write down of some US$134 million on a U.S. solar panel joint venture that stopped production due to a global oversupply. According to Reuters, JPMorgan and Macquarie Bank are among the underwriters for the equity raising, scheduled within the next few weeks. (May 30, 2012)