Intellihub lines up lenders for $500m injection Feb 16, 2023 –...

Intellihub lines up lenders for $500m injection

Feb 16, 2023 – 9.33pm

PEP and Brookfield’s tearaway Intellihub is chasing lenders for an additional $500 million funding, to help speed-up rollout of its smart meters and particularly in New Zealand.

It is understood Intellihub has sent a financial model and formal invitation letters to banks and credit funds, calling on current and potential new lenders to chip into the facility.

The revised model reflects Intellihub’s track record in winning contracts in Australia in the past three years - most recently securing EnergyAustralia from rival Vector. The business is fast-growing and obviously, given the need for the fresh debt, capital hungry.

Intellihub’s growth comes as it cashes in on the roll-out of smart meters across Australia and New Zealand. It’s proving to be effective at big winning contracts off electricity retailers in Austraila - Origin Energy, EA, Aurora, among others - reckons it can do the same across the Tasman.

Funds raised would be used to chase contracts, particularly across the Tasman, where about half of the country’s meters contracts are due to come up for renewal in the next five years.

Interestingly, it comes as Vector seeks to lock in QIC Ltd for its new Vector Metering unit. Vector locked in QIC to take a 50 per cent stake in its Australian and NZ metering unit, in a deal that valued the metering arm at $NZ2.51 billion. Intellihub is clearly coming for its lunch.

The Vector deal was conditional and remains subject to regulatory approvals and third-party funding arrangements. It’s due to complete by March 30.

Intellihub’s new finance would be in addition to the $1.45 billion it raised via a green loan in late 2021. It is understood Intellihub’s has an internal team dealing with the lenders, with Brookfield and PEP’s treasury teams keeping an eye on proceedings.