Search

Affinity Equity Partners secured a A$515 million leveraged loan from ING Bank to acquire Lumus Imaging from Healius Ltd, boosting Australia's buyout financing activity. This deal is part of a series of recent sponsored-driven financings in Australia, including Blackstone Inc.'s takeover of AirTrunk Pte. and Vocus Group's acquisition of TPG Telecom Ltd.'s fiber network. Despite a slowdown in the market compared to last year, these activities are helping to revitalize the Australian buyout financing landscape. [Extracted from the article]

Healthscope Ltd., an Australian hospital operator owned by Brookfield Asset Management, has received a covenant waiver from lenders on a A$1.6 billion ($1.1 billion) loan to allow more time for negotiations with health insurers for higher reimbursements. The waiver, granted until March 2025, aims to prevent a breach of the loan agreement as Healthscope faces challenges with lower earnings. The firm is seeking to restructure the loan due to rising medical costs and difficulties in obtaining higher fees from insurers in Australia. [Extracted from the article]

Blackstone Inc. is considering refinancing around A$5.5 billion of junior debt for the acquisition of AirTrunk Pte. Ltd., marking its largest investment in Asia Pacific. The refinancing will involve obtaining new debt at AirTrunk's operating company level to support the data center operator's expansion in the region. Blackstone has secured a holding company loan with relationship banks like Citigroup Inc., DBS Group Holdings Ltd., and Deutsche Bank AG, offering competitive terms compared to private credit providers. The acquisition of AirTrunk by Blackstone and Canada Pension Plan Investment Board was valued at A$24 billion. [Extracted from the article]

Australia's Labor government has promised to reduce student loans by A$16 billion ($10.5 billion) for universities and skills colleges to address voter frustration over rising living costs. Prime Minister Anthony Albanese plans to cut student loans by 20% from June 1, benefiting over three million Australians. The move aims to ensure intergenerational equity, with 276,000 Australians expected to receive reductions of up to A$12,000. The government's decision comes ahead of an upcoming election, as voter dissatisfaction with the current administration grows due to economic challenges. [Extracted from the article]

Australia's Labor government plans to reduce student loans by A$16 billion ($10.5 billion) to alleviate the financial burden on over three million Australians pursuing higher education. The proposed 20% reduction in all student loans, effective from June 1 next year, aims to make education more accessible and affordable. This initiative follows a recent announcement to lower student debt repayments and increase the repayment threshold, addressing the challenges posed by rising living costs and high inflation rates in the country. [Extracted from the article]

Private credit lenders, such as MaxCap Group and Pallas Capital, are increasingly focusing on lending to Australia's commercial real estate sector as traditional banks reduce their exposure due to stricter capital regulations. This shift has allowed non-bank lenders to double their asset size in the last three years. Global investors, like Warburg Pincus and PGIM, are also entering the Australian market, making it a hotspot for the private credit industry. Despite concerns from regulators about the rapid growth of private credit, the real estate market in Australia is rebounding, with commercial real estate sales increasing by 48% in the first nine months of the year. [Extracted from the article]

Private credit lenders, such as MaxCap Group and Pallas Capital, are increasingly focusing on lending to Australia's commercial real estate sector as traditional banks reduce their exposure due to stricter capital regulations. This shift has allowed non-bank lenders to double their asset size in the last three years. Global investors are also entering the Australian market, making it a hotspot for the private credit industry. Despite concerns from regulators about the rapid growth of private credit, the real estate market in Australia is rebounding, with commercial real estate sales increasing by 48% in the first nine months of the year. [Extracted from the article]

Goldman Sachs Group Inc. has refinanced Pallas Capital's A$500 million private credit commercial real estate fund in Australia. The fund, Pallas Funding Trust No. 2, provides financing to mid-market companies that struggle to access funding from traditional lenders. This initiative is part of a trend in Australia where firms like Rest, PGIM Inc., and Dexus are raising property credit due to local banks being cautious about lending in the private credit market. The Pallas fund offers pre-development and residual stock loans secured against unsold units, as well as investment property loans, with most deals falling between A$2 million and A$20 million. [Extracted from the article]

Bloomberg reports that Blackstone Inc. is seeking bank funding for its acquisition of AirTrunk, bypassing private credit funds. Banks like Citigroup, DBS Group Holdings, and Deutsche Bank are in talks to provide A$5.5 billion in financing, offering more favorable terms than private lenders. This move highlights the dominance of banks in the Asia Pacific region, where private credit remains a niche market. Blackstone plans to roll over A$7 billion of AirTrunk's existing loans and expand its bank group for funding. [Extracted from the article]

The Australian private debt market is experiencing growth as institutional investors seek higher returns in the face of elevated interest rates and banks' cautious lending practices. IFM Investors and QIC Ltd. are expanding their private credit portfolios, with private credit funds offering stable returns amidst regulatory scrutiny. As the industry grows, concerns about valuations and risk management are being addressed by regulators like ASIC. Private credit investments are becoming more accessible to wealthy individuals, but careful manager selection is crucial due to associated risks. [Extracted from the article]

Blackstone Inc. has provided a $600 million private credit loan to Acuity Knowledge Partners, a research and data company owned by Permira Holdings LLP. The loan will be used to refinance Acuity's existing debt and is structured as a unitranche, which combines senior and junior debt. Blackstone has confirmed that the loan has closed, but has not provided further details. Permira acquired Acuity in January 2023 from Equistone Partners Europe Ltd. for an undisclosed amount. Neither Permira nor Acuity have commented on the loan. [Extracted from the article]

BlackRock, the world's largest asset manager, is seeking opportunities for direct lending in India's private credit market. The company is interested in lending to various sectors, including agriculture and hospitality. India's private credit market has experienced significant growth, reaching a record high of $6 billion in the first half of 2024. BlackRock sees India as a promising market for private credit due to Prime Minister Narendra Modi's growth targets and deregulation initiatives. The company views private credit as a key area for growth and aims to catch up to its competitors in this sector. [Extracted from the article]

BlackRock, the world's largest asset manager, is seeking opportunities for direct lending in India's expanding private credit market. The company is interested in lending to various sectors, including agriculture and hospitality. India's private credit market has experienced significant growth, reaching a record high of $6 billion in investments in the first half of 2024. BlackRock sees India as a promising market due to Prime Minister Narendra Modi's growth targets and deregulation initiatives. The company views private credit as a key area for growth and aims to catch up to its competitors in this sector. [Extracted from the article]

Star Entertainment Group Ltd. has secured a new A$200 million debt facility and is seeking additional capital to address its financial challenges and maintain control of its Sydney casino. The company has been found unfit to operate its flagship casino due to breaches of its license, dysfunctional leadership, and a questionable culture. Incoming CEO Steve McCann faces multiple crises, including the potential loss of the casino license and declining revenue. Star Entertainment Group has reported a loss of A$1.69 billion for the past year and is considering raising more funds to meet its near-term liquidity requirements. The company is also facing penalties for alleged breaches of anti-money laundering laws. Despite securing the debt facility, the financial situation remains precarious, and the company is exploring options to improve its performance and cash flow. [Extracted from the article]

Star Entertainment Group Ltd. has secured a new A$200 million debt facility and is seeking additional capital to address its financial challenges and maintain control of its Sydney casino. The company has agreed to pay an annual interest rate of 13.5% on the debt, reflecting its urgent need for cash and fragile financial situation. Star is facing multiple crises, including a recent inquiry that found it unfit to operate the Sydney casino due to breaches of its license, dysfunctional leadership, and a questionable culture. The company is also experiencing significant losses and declining revenue. It is considering raising more money, including through subordinated debt, to meet its near-term funding requirements. Star's CEO, Steve McCann, acknowledges the significant challenges facing the company and is implementing initiatives to improve performance and cash flow. The latest debt finance package is a short-term solution, and Star must demonstrate its financial viability and cultural turnaround plan to the gaming regulator in order to continue operating the Sydney casino. [Extracted from the article]

Star Entertainment Group Ltd. has secured a new A$200 million debt facility from corporate lenders, providing a lifeline for the struggling Australian gaming company as it fights to keep its Sydney casino license. The funds come with an annual interest rate of 13.5% and will be available in two equal tranches, with the first expected at the end of October. The company's existing A$450 million facility has also been reset, with the limit reduced to A$334 million. The agreement allows Star to report its delayed full-year results and resume trading, although it is expected to report its third straight annual loss. [Extracted from the article]

Coronado Finance Pty Ltd., a unit of Australia's Coronado Global Resources Inc., has sold a rare bond in the dollar market as a coal miner. The company raised $400 million with the sale of a five-year note that can be called after two years. Bonds of coal miners have become increasingly rare in the dollar market due to concerns about carbon emissions, leading more miners to seek funding from private credit managers. Indonesia's Indika Energy and US coal producer Alliance Resource Operating Partners LP are the only other coal miners in the Asia Pacific to sell dollar notes this year. [Extracted from the article]

Australian data-center operator, NEXTDC Ltd., is seeking a A$2.9 billion syndicated loan from banks to expand its operations in Asia. CEO Craig Scroggie stated that the demand for digital infrastructure to support cloud and AI technologies in the Asia-Pacific region is driving the need for expansion. The loan, along with a A$750 million capital raising, will provide NEXTDC with over A$3 billion to fund the rollout of nine sites across the region. This move comes amidst a flurry of recent deals in the data-center industry, including the purchase of Australia's AirTrunk by Blackstone Inc. and Canada Pension Plan Investment Board. The loan is being led by Commonwealth Bank of Australia, HSBC Holdings Plc, National Australia Bank Ltd., and Royal Bank of Canada. [Extracted from the article]

Australian data-center operator, NEXTDC Ltd., is seeking a A$2.9 billion syndicated loan from banks to expand its operations in Asia. The CEO, Craig Scroggie, stated that the demand for digital infrastructure to support the rapid expansion of cloud and AI technologies in the Asia-Pacific region is driving the need for expansion. The loan, along with a A$750 million capital raising, will provide NEXTDC with over A$3 billion to fund the rollout of nine sites across the region. The loan is being led by Commonwealth Bank of Australia, HSBC Holdings Plc, National Australia Bank Ltd., and Royal Bank of Canada. [Extracted from the article]

ANZ Group Holdings Ltd., an Australian bank, is facing challenges due to allegations of misconduct in its markets division. The bank is considering policy changes to restore its reputation, and the country's securities regulator is investigating its role in a debt sale. ANZ has struggled with allegations of poor behavior among traders for years, and internal investigations have been conducted in the past. The bank's CEO, Shayne Elliott, has apologized for errors in spreadsheets that misrepresented trading values. ANZ's shares have underperformed compared to its peers, and the banking regulator has called for more capital and an independent review of the bank's issues. The investigations have focused on the Sydney trading room, and there have been concerns about the bank's corporate culture and lack of oversight. ANZ has made efforts to address these issues in the past, but the recent allegations suggest that more needs to be done. [Extracted from the article]

Australia's banking regulator, the Australian Prudential Regulation Authority (APRA), plans to conduct a stress test on the nation's financial sector to gain more insight into the impact of private credit capital flows on other market segments. Private credit is a growing area in financial markets and APRA aims to increase transparency in this area due to concerns about its opaqueness. The agency will conduct a cross-industry stress test to track the linkages between different sectors and the flow of private credit. APRA's focus on private markets aligns with increased scrutiny from the Australian Securities and Investments Commission. Private credit accounted for over 10% of Australia's corporate debt market in 2023, which APRA considers significant. The regulator is also examining the exposure of Australia's $4 trillion pension pool to private credit. [Extracted from the article]

The Australian Securities and Investments Commission (ASIC) has identified private markets as a potential risk to investors due to their rapid expansion and lack of transparency. In its 2024 corporate plan, ASIC stated that it is limited in its ability to collect detailed recurring data, hindering its efforts to increase scrutiny of the financial industry. Australian pension funds now hold a significant portion of their assets in private markets, such as private credit, private equity, and venture capital, which are valued less frequently than public markets. ASIC's focus on driving consistency and transparency across markets and products aims to address these concerns. [Extracted from the article]

US advisory firm Alvarez & Marsal Inc. plans to expand its presence in Australia by hiring 500 people across three business lines - financial due diligence, performance improvement, and tax - by mid-2025. The decision to expand is driven by client demand and the opportunity to grow in a market dominated by big accounting firms and management consultants. The firm expects rising interest rates and subdued economic growth to lead to more companies facing financial difficulties, creating a need for their services. Alvarez & Marsal has a track record of handling major corporate crises and is optimistic about the deal market in Australia. [Extracted from the article]

US advisory firm Alvarez & Marsal Inc. plans to expand its presence in Australia by hiring 500 people across three business lines - financial due diligence, performance improvement, and tax - by mid-2025. The decision to expand is driven by client demand and the opportunity to grow in a market dominated by big accounting firms and management consultants. The firm anticipates that rising interest rates and subdued economic growth will lead to more companies facing financial difficulties, creating a need for their services. Alvarez & Marsal has a track record of handling major corporate crises and is optimistic about the deal market, expecting increased activity in the coming years. [Extracted from the article]

Deutsche Bank has sold $120 million of a $600 million loan used to finance the acquisition of an Australian coal mine to private credit funds, including Income Asset Management Group Ltd., Regal Funds Management, and Keyview Financial Group. The bank plans to retain the remaining portion of the loan, which originally accounted for 40% of the total. This transaction highlights the increasing role of private credit funds as alternative funding sources for fossil fuel-related projects, as banks are avoiding such investments due to environmental concerns. The consortium acquiring the mine also secured a separate working capital loan and guarantee facility. [Extracted from the article]

Private equity firm Blackstone Real Estate Partners LP has secured a loan from Ares Management Corp. and United Overseas Bank Ltd. to refinance a commercial office block in Sydney. The loan will be used to repay a portion of the existing borrowing and fund a dividend payment. The exact amount of the new financing has not been disclosed. This move by Blackstone reflects the challenges faced by owners in selling assets in Australia's commercial real estate sector, which has seen softening valuations. S&P Global Ratings predicts further deterioration in the market. [Extracted from the article]

Golden Energy and Resources Pte Ltd., led by a consortium, has secured a $600 million loan from private credit funds, including Davidson Kempner Capital Management LP, to finance its acquisition of an Australian coal mine. The loan has a five-year tenor and pays around 800 basis points over the secured overnight financing rate. Other lenders involved in the deal include Farallon Capital Management LLC, King Street Capital Management LP, Washington H. Soul Pattinson & Co., Broad Peak Investment Advisers Pte., and Deutsche Bank AG. This highlights the increasing importance of private credit funds in the Asian coal sector, as global banks are becoming more hesitant to finance commodity-related projects due to environmental, social, and governance (ESG) concerns. [Extracted from the article]

Golden Energy and Resources Pte Ltd., led by the Widjaja family of Indonesia, has secured a $600 million loan from private credit funds, including Davidson Kempner Capital Management LP, to finance its acquisition of an Australian coal mine. The loan, which was signed last week, has a five-year tenor and pays around 800 basis points over the secured overnight financing rate. This deal highlights the increasing reliance on private credit funds in the coal sector in Asia, as global banks are becoming more hesitant to lend to commodity-related projects due to environmental, social, and governance concerns. [Extracted from the article]

Wealthy Australians are becoming a significant source of capital for coal projects that have been rejected by banks due to environmental concerns. Income Asset Management Group Ltd. is one fund manager targeting these wealthy individuals, offering investment returns of 12% to 13% per year. The firm has already placed over A$500 million in loans in the last three years in coal and commodity-related infrastructure projects. While there is opposition to coal developments in Australia, the financing pipeline for coal-related projects remains healthy. However, there are concerns about the risks associated with lending to complex projects in the relatively new private credit market. [Extracted from the article]

Warren Buffett's Berkshire Hathaway Inc. has sold approximately 34 million shares of Bank of America Corp. for $1.48 billion, according to a recent public filing. Despite the sale, Berkshire still remains one of the bank's largest shareholders, owning over 998 million shares valued at more than $42 billion. Buffett initially invested $5 billion in the bank in 2011, which helped restore confidence in the lender after the financial crisis. This investment has also been seen as a vote of confidence in the bank's CEO, Brian Moynihan. [Extracted from the article]

Rest, one of Australia's largest pension funds, has invested $270 million in Metrics Credit Partners' real estate private credit fund. This investment is part of Rest's strategy to diversify its private markets exposure and take advantage of favorable interest rates for non-bank lenders. Other pension funds in Australia, such as AustralianSuper and Cbus, have also increased their private credit exposure. Metrics Credit Partners provides commercial property loans to residential and industrial projects, filling a funding gap left by banks due to tighter capital regulations. PGIM Inc. is also entering the market by raising a $750 million Australian real estate debt fund. [Extracted from the article]

Oversea-Chinese Banking Corp. (OCBC) has hired Jeff Heazlewood, a senior resources banker from Commonwealth Bank of Australia (CBA), to lead its expansion into commodities lending. Heazlewood, who spent almost two decades with CBA, will serve as executive director for corporate and project finance in OCBC's Sydney office. The move is part of OCBC's efforts to expand its coverage in the resources sector, in addition to its existing industries such as real estate, infrastructure, energy and utilities, healthcare, and media and telecommunications. [Extracted from the article]

The owners of AirTrunk, an Australian data center operator, are planning to ask lenders to waive a clause in the company's loans that would require it to refinance if the firm is sold. Lenders have the option to stay in the existing agreements if they agree to waive the change-of-control provisions. Credit Agricole, Deutsche Bank, HSBC, and Mitsubishi UFJ Financial Group have provided A$7 billion in financing to fill any potential funding gap. AirTrunk's owners, including Macquarie Asset Management and PSP Investments, have initiated a sale process attracting interest from Blackstone, DigitalBridge Group, and Global Infrastructure Partners. The company operates data centers in Australia, Singapore, Hong Kong, Japan, and Malaysia. [Extracted from the article]

The owners of AirTrunk, an Australian data center operator, have secured $4.6 billion in financing from four banks to assist potential bidders in funding offers for the company. The financing, provided by Credit Agricole SA, Deutsche Bank AG, HSBC Holdings Plc, and Mitsubishi UFJ Financial Group Inc., highlights the growing interest in funding data centers as demand for cloud services increases in the Asia Pacific region. AirTrunk's owners, including Macquarie Asset Management Pty and PSP Investments, may seek a valuation of approximately $12 billion. The company operates data centers in Australia, Singapore, Hong Kong, Japan, and Malaysia. [Extracted from the article]

KKR & Co. has secured a private credit loan of approximately A$500 million ($331 million) from Blackstone Inc. and Goldman Sachs Asset Management to support its acquisition of Perpetual Ltd.'s corporate trust unit in Australia. The loan is structured as a covenant-lite unitranche deal, combining senior and junior debt without financial covenants, and carries an interest margin in the mid-500 basis points range. This deal highlights the increasing significance of the global private credit market, valued at $1.7 trillion, in funding mergers and acquisitions, particularly as traditional lenders become more risk-averse due to higher interest rates. KKR is also seeking separate financing for the wealth management businesses it plans to acquire. [Extracted from the article]

Australian money manager Tanarra Capital is planning to launch a A$1 billion private credit fund to provide loans to local companies. The fund will offer loans between A$100 million and A$150 million with maturities ranging from seven to 12 years and high single-digit interest rates. The loans will target diversified industrial companies in sectors such as transport, logistics, and building materials, which currently face limited funding options. Tanarra Capital aims to tap into Australia's fast-expanding pension savings pool, offering an alternative funding source to companies that primarily rely on banks, bonds, and the US private placement market. [Extracted from the article]

Crescent Capital Partners Management Pty., an Australian private equity firm, is expanding into private credit and has hired Russell Sinclair from PricewaterhouseCoopers LLP to lead the new business. Sinclair previously worked at PwC in Sydney and Westpac Banking Corp. Crescent Capital has raised over A$3 billion from six funds, with a focus on healthcare investments. This move comes as Australian pension funds are increasing their allocation to private credit, although the sector may face challenges due to higher interest rates and rising defaults. [Extracted from the article]

Australian pension funds, including AMP Ltd. and Aware Super, are seeking to expand their exposure to private credit in order to diversify their portfolios and increase returns. AMP has launched a new A$300 million alternative debt fund that will invest in credit risk transfer, a relatively new area of the private market. Other pension funds, such as Cbus, HostPlus, and AustralianSuper, have also increased their allocations to private credit. However, some funds, like Australian Retirement Trust, are prioritizing traditional options such as corporate direct lending and asset-backed lending. Private credit as an asset class may face challenges due to high borrowing costs, tighter cash flows, and rising defaults. [Extracted from the article]

Private equity firm KKR & Co. has signed a deal for a A$200 million ($133 million) loan for MYOB Ltd., an Australian accounting software company that KKR acquired in 2019. The loan will include a payment-in-kind element, allowing the borrower to add the interest cost to the principal amount. The loan will have a margin of 525 basis points over the Australian benchmark rate, with the potential to rise to 575 points if MYOB exercises the payment-in-kind option. The loan will be used to repay a junior debt tranche and finance an earnout arrangement for MYOB's acquisition of Flare, a human resources fintech company. [Extracted from the article]

Carlyle Group Inc. and amicaa, an Australian private credit manager, have agreed to provide a NZ$140 million ($86 million) loan to support a management buyout of New Zealand fuel retailer NPD by its CEO, Barry Sheridan. The loan will be used to refinance existing debt and facilitate the takeover. NPD, founded in 1969, operates a fuel transportation fleet across 109 sites and offers fuel cards to customers. Carlyle and amicaa have previously collaborated on financing deals for other companies in Australia and New Zealand. [Extracted from the article]

Private equity firm KKR & Co. is in discussions with private credit lenders for a new loan for MYOB, an Australian accounting software company that KKR acquired in 2019. The loan will be used to repay MYOB's junior debt and will have a margin in the 400 basis points-plus range. The financing is part of KKR's efforts to lower the cost of debt for the MYOB acquisition and will also fund a deferred payment for MYOB's acquisition of human resources fintech Flare in 2022. The deal is expected to be finalized soon. [Extracted from the article]

Private equity firm KKR & Co. is in talks with several private credit funds to secure a debt package of at least A$800 million ($525 million) to support its bid for Perpetual Ltd.'s corporate trust and wealth management units. The discussions, which include Blackstone Inc., are focused on potential funding channels, such as a private-credit loan. Perpetual confirmed that it is in exclusive discussions with KKR for the sale, following interest from other bidders. KKR's discussions with institutional lenders highlight the growing importance of private credit as an alternative to traditional bank financing. [Extracted from the article]

Credit investor SC Lowy Financial HK Ltd. has approached lenders of a A$1.6 billion loan to Healthscope Ltd., an Australian hospital operator, to inquire about selling the debt. Healthscope is currently in talks with lenders to restructure its liabilities, including a proposal to split its hospitals into two groups. The lenders have formed a steering committee and hired advisors, while Healthscope has also brought on additional restructuring advisors. The loan in question is set to mature in June 2027 and includes major Australian banks, Asian banks, and private credit funds as lenders. [Extracted from the article]

Private funding in Australia experienced a significant decline in 2023, with a 43% drop to A$10 billion ($6.5 billion), according to research firm Preqin Ltd. This decrease can be attributed to higher interest rates and challenging lending markets, which reduced the appetite for capital deployment. The slowdown in fundraising reflects the impact of aggressive interest rate hikes by major central banks, leading to increased borrowing costs and concerns about debt defaults. Despite the decline, private credit assets in Australia rose 33% to A$139 billion during the 18 months through June 2023, with real estate, private equity, and venture capital being the largest sectors. [Extracted from the article]

Muzinich & Co Inc. is expanding its private credit business in Australia by hiring Aris Allegos as a director in Melbourne. This move is aimed at capturing a portion of Australia's A$3.6 trillion pension pool. Allegos, who has experience in fintech lending and has worked at Credit Suisse Group AG and Nomura Holdings Inc., will focus on originating loans and fundraising for Muzinich's private credit funds. This expansion comes at a time when fundraising in the sector has declined due to slower M&A activity and increased competition from traditional banks. [Extracted from the article]

Australian coal producers are turning to private loans as banks become more hesitant to lend due to environmental, social, and governance (ESG) concerns. Private credit lenders are stepping in to fill the gap, attracted by the higher interest rates and attractive margins offered by riskier coal projects. This trend highlights the ongoing conflict between ESG proponents and the coal industry, as private capital, including family offices and individuals, are not bound by the same ESG obligations as large funds. Alternative funding sources, such as private equity firms and asset-backed bonds, have also become more prevalent in the energy industry. Additionally, coal miners are exploring the option of selling minority stakes to customers, such as steel manufacturers, to ensure a sustainable supply. The article mentions Whitehaven Coal Ltd.'s recent success in securing a $1.1 billion loan from private credit lenders after struggling to refinance a loan with banks. The lenders in this case were mainly international funds, and the loan came at a higher cost. The article also notes that private credit could be useful for coal miners transitioning into new business lines, such as metallurgical coal, which is considered less environmentally harmful than thermal coal. [Extracted from the article]

Australian coal producers are turning to private credit lenders as banks become more hesitant to provide loans due to environmental, social, and governance (ESG) concerns. Private credit firms are willing to take on riskier projects with higher interest rates, attracting coal miners who are struggling to secure financing from traditional banks. This shift towards private credit signifies a challenge for ESG proponents, as coal miners seek alternative funding sources to sustain their operations. Additionally, coal miners may sell minority stakes to customers, such as steel manufacturers, to ensure a stable supply. [Extracted from the article]

A consortium led by Golden Energy and Resources is seeking private credit to finance its $1.65 billion acquisition of a coal mine in Australia. The consortium, GEAR M Illawarra Met Coal, has enlisted Grant Samuel as an advisor for the fundraising talks. If successful, this deal would be another example of direct lenders stepping in to finance environmentally questionable projects that banks are avoiding. The sale is expected to close in the first half of 2025, pending regulatory approvals. [Extracted from the article]