Brisbane Airport is looking to raise about AUD 200m-300m (USD 127-190m) through an eight-year Asian term loan, three sources said.

Lenders are watching the potential deal closely to see what pricing the airport gets as this is one of the longer tenor loans that has been tried in the market, one of the sources said, adding that they expect the transaction to conclude next month.

Brisbane Airport is borrowing less than it would in a typical refinancing, as it aims to establish a presence in the Asian term loan (ATL) market and diversify its funding avenues, a second source said.

If successful, the airport will look to build exposure in this market in line with its broader funding strategies, the sources said.

In the past few years, ATLs have become popular again with Australian infrastructure owners. The list of investors that have tapped that market include Tilt Renewables, CDC Data Centres and Intera Renewables, Palisade Investment Partners’ renewables platform.

Lenders in the ATL market are typically a mix of Asian banks and institutional lenders, but often also include European lenders. The borrowers are typically seeking terms of seven-10 years.

The airport is owned by several infrastructure investors, including QIC, Igneo Infrastructure Partners, IFM and Royal Schiphol Group, under a long-term lease.

The airport has typically refinanced on the debt capital markets, according to Infralogic data, with the most recent deal being an AUD 500m issuance last year.

A spokesperson for Brisbane Airport declined to comment.