Adani Ports opts out of US funding for Colombo project
U.S. Development Finance Corporation (DFC) had agreed to provide a loan of $553 million.
Adani Ports and SEZ will use its own resources to fund its Sri Lankan port project and not seek U.S. funding.
"The project is on track for commissioning by early next year, and the project will be financed through internal accruals and capital management plan," the company said in a regulatory filing.
The company added that it has withdrawn its "request for financing from the U.S. International Development Finance Corporation (DFC)."
DFC had, in November 2023, agreed to provide a $553 million loan to support the development, construction and operation of a deep-water container terminal called the Colombo West International Terminal (CWIT) at the Port of Colombo in Sri Lanka.
The CWIT is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings and the Sri Lanka Ports Authority (SLPA).
"The loan process stalled after the DFC asked that the agreement between Adani and the SLPA be amended to align with their conditions, which then went under review by Sri Lanka's Attorney General. As the project is nearing completion, Adani Ports, which holds 51 per cent of the venture, chose to proceed with the project without funding from the DFC," PTI reported.
The Port of Colombo is the largest and busiest transhipment port in the Indian Ocean. It has been operating at more than 90 per cent utilisation since 2021, signalling its need for additional capacity. Phase 1 of the project is scheduled to become commercially operational by Q1 2025, the report added.
As of September 30, 2024, Adani Ports had approximately $1.1 billion (Rs 8,893 crore) in cash reserves and generated an operating profit of $2.3 billion (Rs 18,846 crore) in the past 12 months.