(March 24): Singapore energy provider Sembcorp Industries Ltd has shortlisted banks for an about AUD3 billion (US$2.1 billion or $2.7 billion) loan to fund its purchase of Australia’s Alinta Energy Pty Ltd, according to people familiar with the matter, a further step in the firm’s strategy to expand beyond its home market.
The loan arrangers are ANZ Group Holdings Ltd, DBS Group Holdings Ltd and Oversea-Chinese Banking Corp (OCBC), the people said, who asked not to be identified discussing private matters. Sembcorp had announced the AUD6.5 billion acquisition of Alinta from Chow Tai Fook Enterprises Ltd, the main investment arm of Hong Kong billionaire Henry Cheng’s family at the end of last year.
Australia’s acquisition financing market has started 2026 on strong footing, following a relatively busy 2025. A Macquarie Asset Management-led group is seeking a AUD4.95 billion facility to finance its purchase of Australian logistics firm Qube Holdings Ltd, while Brookfield Asset Management and Singapore’s sovereign wealth fund GIC Pte Ltd are raising AUD2.77 billion to fund their takeover of Sydney-listed National Storage REIT.
Bank of China Ltd, China Everbright Bank Co, Mizuho Financial Group Inc and United Overseas Bank Ltd (UOB) are also financing the Sembcorp loan, the people added. Representatives of ANZ, DBS and OCBC declined to comment, while Sembcorp, Bank of China, China Everbright Bank, Mizuho and UOB didn’t respond to requests for comments.
The sale will also provide a much-welcome capital infusion to Chow Tai Fook, the largest shareholder of cash-strapped property developer New World Development Co.
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.
See also: Stonepeak-backed group near buyout of Yinson — Bloomberg
Sembcorp’s AUD3 billion loan — split between an acquisition tranche and funds for working capital — partially refinances a AUD6.5 billion bridge facility the company borrowed initially to fund the takeover.
Separately, Sembcorp is also raising Singapore-dollar debt to refinance part of the bridging loan.
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