In a bid to help finance the purchase of Australian port and logistics giant Asciano, Australia's Qube Holdings and Canada's Brookfield Asset Management Inc are raising a US$753 million loan, which will be split into two units, with both companies each owning a 50% share, according to the Daily Mail.
An unnamed source said that five banks, including Citigroup and the Australia and New Zealand Banking Group will be providing financing on a club basis.
Brookfield and Qube Holdings previously announced their decision to unite for the stake in Asciano, in what is anticipated to cost more than $6 billion.
Had it not been for the agreement, the stake would have gone to Qube Holdings, whose previous bid was favoured over its rival Brookfield.
While the tension between both competitive parties has alleviated, a significant restructuring of Australia’s economy may be required in order to adjust to the buyout.