Private Credit Funds Mull Jumbo Loan for Australian Coal Mines

Private credit funds are considering jumbo loans to help finance bids for coal mines that BHP Group Ltd. is seeking to offload in Australia, people familiar with the matter said.

The funds are in talks to potentially underwrite financing of $2 billion to $3 billion for competing bids from Indonesian mining contractor Bukit Makmur Mandiri Utama Pt (Buma) and Australian coal producer Stanmore Resources Ltd., according to the people, who asked not to be identified speaking about private matters.

The mines are called Daunia and Blackwater in the northeastern state of Queensland. Buma and Stanmore have made initial bids ...