(March 10): Singapore’s Sembcorp Industries Ltd is seeking a loan of around AUD3 billion (US$2.1 billion or $2.7 billion) to back its purchase of power generator and retailer Alinta Energy Pty Ltd, according to people familiar with the matter, adding to a growing wave of acquisition funding in Australia.
The loan for Sembcorp’s Australian unit will be split between an acquisition tranche — with a tenor ranging from five to 10 years — and a working capital portion, the people said, asking not to be identified discussing private matters. Goldman Sachs Group Inc and DBS Group Holdings Ltd are the joint financial advisers on the deal, which partially refinances a bridge facility of about AUD6.5 billion, people familiar said.
Goldman Sachs declined to comment, while Sembcorp and DBS didn’t immediately respond to requests for comments.
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 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 National Storage Real Estate Investment Trust.
Merger and acquisition and leveraged buyout financing volumes for Australian borrowers rose 1.5% year-on-year to US$16.8 billion in 2025, according to Bloomberg-compiled data.
Sembcorp is also mulling raising Singapore dollar-denominated debt to take out part of the bridge, the people said, adding that discussions are ongoing and details could change.
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Sembcorp — which is backed by state-owned Temasek Holdings Pte Ltd — announced in December that it will buy Alinta for AUD6.5 billion in enterprise value from Chow Tai Fook Enterprises Ltd, furthering the Singaporean company’s ambitions to expand outside its home market. The deal is expected to be completed in the first half of 2026, subject to regulatory approval.
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