Investment firm Partners Group, based in Zug, Switzerland, has provided subordinated debt financing of AUD 27 million ($25 million) for the Newcastle Coal Infrastructure Group to build a new coal export terminal in New South Wales, Australia. The bulk of the coal is mined for export and NCIG plans to expand the capacity of the export terminal for 53 million tons a year.
Partners Group invests in the Newcastle Coal Infrastructure Group on behalf of its clients
Partners Group, the global private markets investment manager, has closed a direct investment in the Newcastle Coal Infrastructure Group (NCIG) on behalf of its clients.
NCIG received approval from the New South Wales Government in Australia to build and operate a new Coal Export Terminal (CET). The CET is strategically located in the Port of Newcastle and the first stage of the terminal opened in the beginning of May 2010 and has a capacity of 30 million tons per annum when fully commissioned. Due to the demand for additional coal loading capacity from New South Wales export producers and growth prospects in the thermal coal markets of Asia Pacific, NCIG intends to expand the capacity of the CET to 53 million tons per annum.
Partners Group, on behalf of its clients, provided a subordinated debt financing to NCIG of AUD 27 million to support this second development stage. From a risk/return perspective, the subordinated debt tranche offers attractive terms with strong downside protection due to secure revenue streams which are based on long-term “ship or pay” agreements (a buyer agrees to pay for contracted transportation capacity regardless of actually transported volumes) from long-life source mines.
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 20 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. The firm manages a broad range of funds and customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, London, Guernsey, Luxembourg, Dubai, Singapore, Beijing, Tokyo and Sydney. The firm employs over 400 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of above CHF 4 billion with a clear majority owned by its 36 Partners and all employees.