RRJ Capital provides $140m private credit facility to Tahmoor Coal

Private credit firm RRJ Capital has agreed to provide a $140m senior secured loan to Australian coking coal producer Tahmoor Coal to support the restart of its mining operations, according to a report by Bloomberg.

The deal that highlights the growing role of private lenders in financing assets that have become more challenging for traditional banks.

The five-year facility has been signed but had not yet been funded as of 21 September, according to people familiar with the transaction. Sydney-based investment bank Grant Samuel arranged the financing.

RRJ Capital and Grant Samuel reportedly declined to comment, while Tahmoor Coal reportedly did not immediately respond to requests for comment.

The financing comes as banks have become more selective about lending to coal and other fossil-fuel projects, with environmental, social and governance policies restricting some forms of traditional bank financing. Private credit managers, which can offer bespoke financing structures and direct lending solutions, have consequently been able to target parts of the market where conventional lenders have reduced their exposure.

The Tahmoor transaction follows Whitehaven Coal’s $1.1bn acquisition financing in 2024, which attracted 17 private credit lenders alongside a single bank. The deal demonstrated the extent to which private debt providers have been able to participate in financing large Australian mining transactions.

RRJ Capital raised $1.1bn for its debut private credit fund earlier this year, providing the firm with additional capital to pursue direct lending opportunities across the Asia-Pacific region.

Tahmoor, located in New South Wales, was previously owned by GFG Alliance, which acquired the mine from Glencore in 2018.