September 26, 2024

Coronado Unit Sells Rare $400 Million Bond in Dollar Market 💵

Australia’s Coronado Global Resources Inc. raised $400 million through a five-year bond, marking a rare issuance by a coal miner in the dollar market. The bond, sold by Coronado Finance Pty Ltd., offers a 9.25% yield, significantly higher than the 6.7% average for similarly rated corporate bonds.

Coal miners’ bonds have become scarce in public markets due to growing concerns over carbon emissions. Many now rely on private credit funding, such as Singapore’s Golden Energy and Resources, which secured a $600 million loan in July.

Coronado joins Indonesia’s Indika Energy and US-based Alliance Resource Operating Partners LP as one of the few coal miners issuing dollar bonds this year.

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