Caltex Australia Limited ("Caltex") today announced an offer of Caltex Subordinated Notes ("Notes") to raise $300 million, with the ability to raise more or less (the "Offer").

The Notes are dated, direct, unsecured, subordinated, and cumulative in nature. Caltex today lodged a Prospectus with the Australian Securities and Investments Commission ("ASIC").

Capitalised terms in this release have the meaning given to them in the Prospectus. The Offer of Notes forms part of Caltex's ongoing capital management strategy. The proceeds will be used for general corporate purposes and for the refinancing of existing indebtedness.

Caltex's Chief Financial Officer, Mr Simon Hepworth said, "The Notes represent Caltex's first retail targeted capital markets transaction since listing on the ASX, and provides investors with a new investment opportunity in Caltex. The Offer will be open to retail and institutional investors, including Caltex's Australian shareholders.

"The Offer will provide a number of benefits to Caltex, including increased funding flexibility and diversification as the company seeks to implement a number of strategic initiatives. These include continued investment in Caltex's supply chain and Marketing operations to maintain growth momentum.

The most significant investment is the closure and conversion of the Kurnell Refinery in Sydney to a major import terminal.

"The Offer highlights Caltex's pro-active and prudent approach towards implementing its capital management strategy and is consistent with our objective of maintaining a prudent credit profile. Caltex expects that the Notes will provide an amount of equity credit from Standard & Poor's." Mr Hepworth said.