MUFG takes big loss on loan to Glencore-led coal port
2020-03-19 16:23:46 [Print]
Mitsubishi UFJ Financial Group (MUFG) sold off its $85 million loan to Glencore's Wiggins Island Coal Export Terminal (WICET) in Australia to a hedge fund on Wednesday at about 52 cents on the dollar, two sources said.
The costly decision at a time of extreme market volatility extinguishes MUFG's exposure to the coal-related asset ahead of the bank's financial year-end on March 31, the two sources and a third person disclosed.
"March 31 is approaching and Japanese banks tend to offload positions before that, but that's a huge discount for something that is a performing asset," one of the sources, who is also a WICET lender, said. "It was a great buy."
WICET, the world's most expensive coal terminal, is owned by Glencore Plc and four partners, including New Hope Corp, China's Yancoal, Coronado Global Resources, and Baosteel arm Aquila Resources.
The costly decision at a time of extreme market volatility extinguishes MUFG's exposure to the coal-related asset ahead of the bank's financial year-end on March 31, the two sources and a third person disclosed.
"March 31 is approaching and Japanese banks tend to offload positions before that, but that's a huge discount for something that is a performing asset," one of the sources, who is also a WICET lender, said. "It was a great buy."
WICET, the world's most expensive coal terminal, is owned by Glencore Plc and four partners, including New Hope Corp, China's Yancoal, Coronado Global Resources, and Baosteel arm Aquila Resources.
