Singapore’s Golden Energy secures $1.1 billion to buy Australian coking coal assets: Sources
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GEAR will hold 70 per cent of the consortium while privately held Australian coal company M Resources will own the rest.
PHOTO: GOLDEN ENERGY AND RESOURCES
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MELBOURNE - A consortium led by Singapore’s Golden Energy and Resources (Gear) has secured US$850 million (S$1.1 billion) to buy South32’s Australian coking coal assets, two sources told Reuters, as private credit continues to fill a funding gap for the largely debanked sector.
A syndicate of five private credit lenders and one global investment bank will lend US$600 million to Gear M Illawarra Met Coal for its purchase of South 32’s Illawarra metallurgical coal business, two sources familiar with the matter said on July 21.
South32 said in February it had agreed to sell the business in New South Wales state for US$1.65 billion, exiting coal to focus on expanding in copper and zinc.
Gear will hold 70 per cent of the consortium, while privately held Australian coal company M Resources will own the rest.
The funding round contains an additional US$150 million in working capital and A$150 million (S$134.9 million) in guaranteed facilities provided by banks and insurers, said the sources.
The facility is for five years, with a coupon at 850 basis points above benchmark US overnight financing rate SOFR. Grant Samuel was mandated adviser.
Grant Samuel and Gear did not respond to e-mailed requests for comment outside of normal business hours. M Resources declined to comment.
Gear was delisted from the Singapore Exchange in September in 2023 after a successful $2.23 billion offer by majority owner Indonesia’s Widjaja family, who owns conglomerate Sinar Mas Group. REUTERS
