Skip to content

Special situations shops monitor coal export terminals as refi cliff looms

Special situations groups are watching coal terminals, which may face a difficult refinancing environment

Jack Derwin and James Arbuthnott
Make us a preferred source
Refinancing risk poses a greater threat than commodity requirements for Australian coal export terminals. / AAP photographer Paul Miller.

Special situations investors and advisors are monitoring Australia's thermal coal export terminals amid fears environmental risks and rising interest rates may threaten their ability to refinance their debts.

Market sources who spoke on the condition of anonymity told Capital Brief that special situations firms have their eyes on Port Waratah Coal Services (PWCS), Newcastle Coal Infrastructure Group (NCIG) and the Wiggins Island Coal Export Terminal (WICET).

Despite strong demand and elevated prices, credit markets are increasingly considering the heightened risks of investing in coal and businesses exposed to the controversial commodity.

Special situations investors look at companies which plain vanilla lenders would not fund due to risks such as high debt levels or ESG concerns. Coal is considered in the special situations area as its lender base is diminishing and government policy may affect future revenue.