Indonesian energy company TBS Energi Utama is seeking to raise US$100 million (RM409.5 million) in private credit financing for its Singapore-based waste management subsidiary, Cora Environment, to support its capital expenditure requirements.
According to sources familiar with the matter, TBS Energi has approached private credit funds to assess interest in the potential financing exercise. The proposed funding could involve a hybrid structure or include an equity-like component, although discussions remain at an early stage and the final terms may change.
Separately, the Jakarta-listed company recently completed a S$385 million (RM1.22 billion) financing facility aimed at refinancing a S$300 million acquisition loan and repaying a S$50 million mezzanine facility previously provided by Muzinich & Co.
Based on a company disclosure dated June 26, DBS Group Holdings acted as the sole underwriter for the refinancing facility. TBS Energi did not immediately provide comments on the financing discussions, while DBS and Muzinich declined to comment.
The move places TBS Energi among a growing number of Asian companies exploring private credit markets as an alternative source of funding to diversify their financing options. While bank loans remain a preferred choice among many companies due to lower costs, private credit providers continue to gain traction by offering more flexible structures, particularly for mid-market companies and businesses with specialised funding needs.
Private credit funds have increasingly become an alternative financing option for companies that may require customised solutions beyond traditional lending arrangements, despite borrowers generally remaining sensitive to financing costs.
TBS Energi Utama operates across several growth sectors, including waste management, renewable energy and electric vehicles. The company expanded its presence in the environmental services sector last year after completing the acquisition of Sembcorp Environment from Singapore-based energy group Sembcorp Industries, subsequently rebranding the business as Cora Environment.
Cora Environment provides waste management services for public, industrial and commercial sectors in Singapore. Its operations include a material recovery facility as well as medical and bio-hazardous waste treatment facilities, according to information on the company’s website.
