Orica Raises US$390 Million Amid Strong Investor Demand

Orica Limited (ASX: ORI) successfully raised US$390 million (A$599 million) through a heavily oversubscribed bond issuance in the US Private Placement market.

• The offering attracted US$4 billion in investor demand, reflecting strong confidence in Orica’s strategic direction and operational improvements.
• Shares rose 1.6% to A$20.80 at the time of writing, following the announcement, as investors welcomed the company's strengthened financial position.

Oversubscribed Bond Issue Signals Market Confidence

Orica Limited (ASX: ORI) has successfully raised US$390 million (approximately A$599 million) through the issuance of fixed-rate unsecured notes in the US Private Placement market. The offering drew significant investor interest, resulting in an oversubscribed final order book of US$4 billion—ten times the original amount sought—at the time of writing.

The ASX-listed explosives and blasting services provider will use the funds to repay US$150 million in

notes due later this year. The remaining capital will go towards reducing its current drawn committed bank facilities, further strengthening its balance sheet and improving liquidity.

CEO Hails Vote of Confidence

Orica’s Managing Director and CEO, Sanjeev Gandhi, welcomed the overwhelming support from global debt investors. He said the strong interest was a clear vote of confidence in Orica’s strategic direction, which focuses on enhancing operational efficiency and long-term value creation.

“This result is a testament to our improved performance and the trust investors place in our long-term growth plans,” Gandhi stated.

Share Price Boost Reflects Positive Sentiment

Investor sentiment around the successful capital raising was reflected in Orica’s share price, which climbed 1.6% to A$20.80 on Tuesday at the time of writing. The market appears to have responded positively to both the terms of the bond issue and the company’s disciplined approach to capital management.

Looking Ahead

The completion of this bond issuance not only reduces Orica’s near-term refinancing risks but also provides additional flexibility to support its ongoing growth initiatives. Analysts will now be watching closely to see how the company deploys this financial momentum to advance its operational and strategic goals.

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