Australia’s largest gas infrastructure business APA Group (ASX:APA) today announced the successful completion of its $300 million institutional placement.

Proceeds of the institutional placement will be used to fund the acquisition of the 80 MW Emu Downs Wind Farm and development rights for an adjacent 130 MW development site (collectively "Emu Downs") and to partially fund the organic expansion of its energy infrastructure portfolio across Australia over the period to June 2012.

The placement was significantly oversubscribed with strong demand from existing institutional shareholders and new investors from Australia and around the globe.

APA Managing Director, Mick McCormack said: "It is very pleasing to see the strong support for APA’s business model and growth strategy reflected in the success of today’s placement, particularly as it is the first opportunity in over four years for institutional investors to participate in an APA equity raising.

"The Emu Downs acquisition is consistent with APA’s strategy of leveraging our gas infrastructure portfolio to develop related energy projects for our customers."

As a result of the placement, APA will issue approximately 78 million new APA securities, a 14% increase in APA’s issued securities. The securities issued under the placement will not be entitled to the FY11 final distribution, but will otherwise rank equally with existing securities from the date of issue. Settlement is scheduled to take place on Wednesday, 29 June 2011, with allotment and trading of new securities expected to occur on ASX Limited (ASX) on Thursday, 30 June 2011.

The issue of new securities is within the 15% placement capacity available under the Listing Rules, for which securityholder approval is not required.

Now that the placement has been finalised, APA anticipates that the trading halt in relation to its securities will be lifted today.