This article first appeared on GuruFocus .
Sembcorp Industries ( SCRPF ) is advancing its push into Australia, with the Singapore-based energy provider shortlisting banks for an approximately A$3 billion loan to support its acquisition of Alinta Energy. The financing group is expected to include ANZ, DBS and OCBC as arrangers, alongside Bank of China, China Everbright Bank, Mizuho and United Overseas Bank, according to people familiar with the matter. The loan comes after Sembcorp agreed to acquire Alinta for A$6.5 billion from Chow Tai Fook Enterprises, the investment arm of Hong Kong billionaire Henry Cheng's family, marking a notable step in the company's strategy to expand beyond its home market.
The proposed facility is expected to be split between an acquisition tranche and working capital, and could partially refinance the bridge loan initially used to fund the takeover. In parallel, Sembcorp is also raising Singapore-dollar debt to refinance another portion of that bridging facility, suggesting a multi-layered funding approach as it works through the transaction. The sale may also provide a capital infusion to Chow Tai Fook, which is the largest shareholder of New World Development, a property developer that has faced financial pressure.
The deal is emerging as Australia's acquisition financing market shows early strength in 2026, following a relatively active 2025. A Macquarie Asset Management-led group is seeking about A$4.95 billion to finance its purchase of Qube Holdings, while Brookfield and GIC are raising roughly A$2.77 billion for their takeover of National Storage REIT. That pickup in activity comes as global banks navigate volatile market conditions, with the Iran war and concerns around private credit potentially complicating efforts to place large volumes of leveraged debt tied to buyouts.
