(Reuters) -India’s Adani Ports and Special Economic Zone Ltd said on Tuesday it would finance its Colombo port terminal project through internal accruals and a capital management plan, withdrawing its request for funding from the U.S. International Development Finance Corp (DFC).
DFC last year said it would provide $553 million in financing for the port terminal project, which is partly owned by the Adani Group.
The company, however, said the Colombo West International Terminal project is progressing well and is on track for commissioning by early 2025.
DFC did not immediately respond to a Reuters request for comment.
Ports-to-edible oils Adani Group, controlled by Indian billionaire Gautam Adani, holds a 51% stake in the west container terminal of the port, which also has a terminal run by China Merchants Port Holdings Co Ltd.
Sri Lankan conglomerate John Keells Holdings owns 34% of the terminal and the rest is held by the state-run Sri Lanka Ports Authority.
Last month, U.S. authorities accused Adani Group Chairman Gautam Adani and seven others of being part of a $265 million scheme to bribe Indian officials, and of misleading U.S. investors while raising funds there.
The ports-to-power conglomerate has termed the allegations “baseless” and said it would seek “all possible legal recourse”.
But the conglomerate has pulled out of the loan deal as it wrestles with allegations of bribery brought by the US in November. The terminal “will be financed through the company’s internal accruals and capital management plan”, Adani Group’s ports business said in a statement released late on Tuesday. “We have withdrawn our request for financing from the DFC.”
The Financial Times meanwhile said the withdrawal shows how the Indian conglomerate may be hit by funding constraints in the wake of criminal and civil charges. The company has repeatedly denied any wrongdoing, and Gautam Adani said last month that “every attack makes us stronger”. Last month, the development financing agency said it had yet to disburse the $553mn loan and was still conducting due diligence.
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(Reuters) -India’s Adani Ports and Special Economic Zone Ltd said on Tuesday it would finance its Colombo port terminal project through internal accruals and a capital management plan, withdrawing its request for funding from the U.S. International Development Finance Corp (DFC).
DFC last year said it would provide $553 million in financing for the port terminal project, which is partly owned by the Adani Group.
The company, however, said the Colombo West International Terminal project is progressing well and is on track for commissioning by early 2025.
DFC did not immediately respond to a Reuters request for comment.
Ports-to-edible oils Adani Group, controlled by Indian billionaire Gautam Adani, holds a 51% stake in the west container terminal of the port, which also has a terminal run by China Merchants Port Holdings Co Ltd.
Sri Lankan conglomerate John Keells Holdings owns 34% of the terminal and the rest is held by the state-run Sri Lanka Ports Authority.
Last month, U.S. authorities accused Adani Group Chairman Gautam Adani and seven others of being part of a $265 million scheme to bribe Indian officials, and of misleading U.S. investors while raising funds there.
The ports-to-power conglomerate has termed the allegations “baseless” and said it would seek “all possible legal recourse”.
But the conglomerate has pulled out of the loan deal as it wrestles with allegations of bribery brought by the US in November. The terminal “will be financed through the company’s internal accruals and capital management plan”, Adani Group’s ports business said in a statement released late on Tuesday. “We have withdrawn our request for financing from the DFC.”
The Financial Times meanwhile said the withdrawal shows how the Indian conglomerate may be hit by funding constraints in the wake of criminal and civil charges. The company has repeatedly denied any wrongdoing, and Gautam Adani said last month that “every attack makes us stronger”. Last month, the development financing agency said it had yet to disburse the $553mn loan and was still conducting due diligence.
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