Thursday, October 15, 2020

Coal Terminal IPO: Will Yield Investors or Environmentalists Win?

Lead by the top infrastructure fund in the world  

"...But an infrastructure asset like DBCT with contracted cash flows could still be an attractive investment in the current near-zero interest rates, fund managers told Reuters, despite an increasing focus on environmental, social and governance principles that threaten to dampen appetite for a coal play.

Coal is the dirtiest fossil fuel.

“Some investors have issues with coal-related stocks but we would be interested in good infrastructure assets if they are well structured and underpinned by long-term assets and long-term contracts generating long-term income streams,” said one of the sources, a Sydney-based fund manager..."

https://www.reuters.com/article/us-brookfield-divestment-dbct/canadas-brookfield-to-kickstart-ipo-of-australian-1-4-billion-coal-port-next-week-sources-idUSKBN270034

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