Adani Ports Withdraws from $553 Million US Loan for Colombo Port Terminal Project

Adani Ports Withdraws from $553 Million US Loan Deal for Colombo Port Terminal Project

Billionaire Gautam Adani’s Adani Ports and Special Economic Zone (APSEZ) has announced its decision to withdraw from a $553 million loan agreement with the US International Development Finance Corporation (DFC). The loan was initially meant to fund the development of a port terminal in Colombo, Sri Lanka.

In a filing to the stock exchange, Adani Ports confirmed that it would no longer seek financing from the DFC for the project. Instead, the company plans to fund the project through its internal accruals and capital management strategy. “The project will be financed through the company’s internal accruals and capital management plan. We have withdrawn our request for financing from the DFC,” the filing stated.

This move comes amid a backdrop of controversy, including a legal case in the US where Adani and his associates face charges related to alleged bribery for solar energy projects. Adani Ports has denied the bribery allegations, calling them “baseless.”

The $553 million loan was initially agreed upon last year as part of the US’s broader effort to offer an alternative to Chinese investments in infrastructure projects across the developing world. While the loan has not been disbursed yet, construction work on the Colombo port terminal project is already underway with local partners.

In related news, Sri Lanka’s newly elected President, Anura Kumara Dissanayake, is scheduled to visit India from December 15-17 for his first overseas trip since assuming office.