Mirae Asset underwrites $243 mn senior debt on Australian coal terminal

Mirae Asset Daewoo Co. Ltd. has bought the entire A$330 million ($243 million) senior debt recently issued on Abbot Point coal terminal in Queensland, in its first debt underwriting in whole for a large-size overseas infrastructure asset.

The senior secured loan, sold to refinance debt of the coal terminal in Australia, is expected to offer 5%-range annual returns for a seven-year investment period, according to investment banking sources on July 1.

Mirae Asset is reselling the debt to domestic institutional investors such as insurance companies.

The value of Abbot Point coal terminal, recently assessed for the debt refinancing, is A$2.3 billion, the sources added.

Abbot Point coal terminal is operated by Adani Abbot Point Terminal Pty Ltd. after India’s Adani Group purchased a 99-year lease for the terminal from the Queensland government in 2011.

It launched a loan of up to A$500 million in August of last year to partially refinance A$580 million due in October, Thomson Reuters reported in March.

According to the report, Adani was looking at funding sources such as Japan, South Korea and Taiwan where coal from the port goes.

By Daehun Kim and YH Hugh Jeong

daepun@hankyung.com