Sembcorp shortlists banks for $2.7 billion loan to buy Australia’s Alinta Energy: Sources
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Sembcorp had announced the acquisition of Alinta at the end of 2025.
PHOTO: REUTERS
SYDNEY – Singapore energy provider Sembcorp Industries has shortlisted banks for a roughly A$3 billion (S$2.7 billion) loan to fund its purchase of Australia’s Alinta Energy, according to people familiar with the matter, a further step in the company’s strategy to expand beyond its home market.
The loan arrangers are ANZ Group Holdings, DBS Group Holdings and OCBC Bank, the sources said. Sembcorp had announced the A$6.5 billion acquisition of Alinta from Chow Tai Fook Enterprises, the main investment arm of Hong Kong billionaire Henry Cheng’s family, at the end of 2025.
Australia’s acquisition financing market has started 2026 on a strong footing, following a relatively busy 2025. A Macquarie Asset Management-led group is seeking a A$4.95 billion facility to finance its purchase of Australian logistics firm Qube Holdings, while Brookfield Asset Management and Singapore sovereign wealth fund GIC are raising A$2.77 billion to fund their takeover of Sydney-listed National Storage REIT.
Bank of China, China Everbright Bank, Mizuho Financial Group and UOB are also financing the Sembcorp loan, the sources added. Representatives of ANZ, DBS and OCBC declined to comment, while Sembcorp, Bank of China, China Everbright Bank, Mizuho and UOB did not respond to requests for comment.
The sale will provide a much-welcome capital infusion to Chow Tai Fook, the largest shareholder of cash-strapped property developer New World Development.
The latest deal comes at a time when global banks are facing the most volatile markets in months as they look to offload billions of dollars of junk debt to fund buyouts, against a backdrop of the Iran war and concerns about private credit.
Sembcorp’s A$3 billion loan – split between an acquisition tranche and funds for working capital – partially refinances a A$6.5 billion bridge facility the firm borrowed initially to fund the takeover. Separately, Sembcorp is also raising Singapore-dollar debt to refinance part of the bridging loan. BLOOMBERG
