Mallesons has advised a syndicate of financiers on the financing for Yancoal Australia’s acquisition of the Kestrel coal mine from EMR Capital and Adaro. Kestrel is a large-scale, long-life metallurgical coal asset located in Queensland’s Bowen Basin.
The financing comprises a 5-year US dollar term acquisition facility of up to US$1.2 billion and a 5-year Australian dollar or US dollar working capital facility of up to US$200 million to support Yancoal’s ongoing liquidity requirements.
Total commitments raised by the syndicate significantly exceeded final allocations, reflecting strong lender support for the transaction in the current market environment.
Financial Close remains subject to satisfaction of conditions precedent under the acquisition documents, including regulatory approvals, and is targeted towards the end of the third quarter of 2026.
The Mallesons Banking & Finance team was led by Melbourne partner Andrew Deszcz, with support from Senior Associate Yin Ma and Solicitors Emily Powell and Oakley Conroy.
Commenting on the transaction, Andrew Deszcz said:
"Acquisition financings of this scale and structure rely on the team’s ability to guide the syndicate towards a common objective whilst ensuring individual bank objectives are achieved. The level of oversubscription on this transaction whilst primarily demonstrating the depth of capital available to support high-quality, long-life metallurgical coal assets in the current market is also reflective of banks’ comfort with the process."
This transaction extends Mallesons' track record advising lender syndicates on Australia's largest acquisition and resources financings.
