(July 22): Indonesian energy firm TBS Energi Utama is seeking US$100 million (RM409.5 million) in private credit for its Singapore-based waste management unit Cora Environment to fund capital expenditure, according to people familiar with the matter.

TBS has approached private credit funds to gauge interest in the deal, which can take the form of a hybrid structure or include an equity-like portion, said the people, who asked not to be identified discussing private matters. Discussions are preliminary, and details could still change, they said.

Separately, the Jakarta-listed firm recently closed a S$385 million (RM1.22 billion) loan to refinance a S$300 million acquisition loan and repay a S$50 million mezzanine facility provided by Muzinich & Co, the people said. DBS Group Holdings is the sole underwriter of the financing, according to a company disclosure dated June 26.

TBS Energi didn’t immediately respond to a request for comment, while DBS and Muzinich declined to comment.

TBS Energi joins a growing list of Asian companies tapping private credit funds to diversify their financing options. Asian borrowers, however, remain highly price-sensitive, often favouring bank loans, which are typically 200 to 400 basis points cheaper than private debt due to the yield requirements such funds must meet on their investments.

Nevertheless, private credit funds maintain a competitive advantage in serving small and medium-sized enterprises and mid-market borrowers — segments that are often underserved by traditional lenders.

TBS Energi Utama focuses on waste management, renewable energy and electric vehicles. Last year, it completed the acquisition of Sembcorp Environment from Singapore energy firm Sembcorp Industries and rebranded it as Cora Environment.

Cora manages public, industrial, and commercial waste in some parts of Singapore, and operates a material recovery facility, medical and bio-hazardous waste treatment plant, according to its website.

Uploaded by Evelyn Chan