Private credit funds want a slice of winning BHP coal bid
BHP is set to select a preferred bidder for its Daunia and Blackwater coal mines in coming weeks, and private credit funds are expected to play a key financing role.
Australian multinational miner BHP is expected to finalise the auction for its Daunia and Blackwater coal mines in a matter of weeks, with private credit funds poised to play a key role in financing the successful bid.
Two sources close to the process said BHP is expected to wrap up the sale of the assets, which could fetch between $US3.5 billion ($5.5 billion) and $US5 billion, before the end of September.
Yancoal, Peabody Energy, Indonesian coal mining contractor BUMA, Stanmore Resources and Whitehaven Coal are among the bidders which have made offers for both or either of the assets.
The role of private credit funds in the transaction has been a talking point for people involved in the deal this week, and reflects growing ESG concerns among international banks and other investors about financing coal.
