Adani Ports withdraws from $553 million US loan deal for port terminal project in Colombo: Reports

As per the reports, the company said in an exchange filing it will finance the project through its internal accruals and capital management plan.

Updated on: Dec 11, 2024, 12:09:39 IST

By HT News Desk

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Billionaire Gautam Adani-owned Adani Ports and Special Economic Zone (APSEZ) Limited has withdrawn from a $553 million loan pact with the US International Development Finance Corporation (DFC) to develop a port terminal in Sri Lanka's capital Colombo, outlets such as Bloomberg, Reuters and PTI have reported.

The Adani Group has denied all allegations, describing them as “baseless”. (HT PHOTO)

Also Read: US to provide $553 million for Adani terminal venture at Sri Lanka port

The reports, based on a Monday night filing by APSEZ, claimed the company will finance the project through its internal accruals and capital management plan.

“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 We have withdrawn our request for financing from the DFC,” the filing read.

However, there was no mention of the indictment of Adani and his aides in a US court for allegedly promising to pay $265 million to Indian government officials for solar energy projects, and concealing the plan as they sought to raise money from American investors.

Adani, the second-richest person in Asia behind compatriot Mukesh Ambani, and Adani Ports have rejected the bribery charge.

The indictment has kicked up a political storm in India, where opposition parties have repeatedly accused Prime Minister Narendra Modi of 'favouring' the industrialist. Both are from the same state, Gujarat.

Also Read: BJP questions timing of Adani's US indictment, Congress cries foul

Separately, Sri Lanka's newly-elected President, Anura Kumara Dissanayake, will be in India from December 15-17 for his maiden foreign visit after taking office.

The Colombo Port project

The loan agreement for the Colombo port terminal was signed last year amid US enthusiasm to offer an alternative to China for infrastructure investment in the developing world.

While no portion of the financing has been disbursed, construction work has commenced for the project, which has local partners as well.

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HT News Desk
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