Adani Ports pulls out of US funding for CWIT

• Says withdraws from a funding request of US $ 533mn from US International Development Finance Corporation for CWIT project in Sri Lanka
• Says joint venture with JKH and SLPA will be financed through company’s internal accruals and capital management plan
• Informs CWIT project in Sri Lanka is progressing well and is on track for commissioning by early next year

Adani Ports and Special Economic Zone Limited yesterday shared that it has pulled back from a funding request from US International Development Finance Corporation (USIDFC) for the Colombo West International Terminal (CWIT) project in Sri Lanka.

Adani Ports noted that the project, which is a joint venture with John Keells Holdings (JKH) and the Sri Lanka Ports Authority (SLPA), would be financed through the company’s internal accruals and capital management plan.

“We have withdrawn our request for financing from DFC,” Adani Ports and Special Economic Zone Limited said in a filing to the Bombay Stock Exchange yesterday.

It also went on to inform that the CWIT project in Sri Lanka is progressing well and is on track for commissioning by early next year. 

In November last year, USIDFC announced it would invest US $ 533 million in CWIT. It would have been the corporation’s largest infrastructure investment in Asia. It was meant to improve America’s presence in the region to counter China’s dominance.

However, following the bribery charges filed against Adani Group in the United States, the corporation initiated due diligence last month. The US prosecutors indicted Gautam Adani and others, on charges of assisting in driving a bribery scheme of about US $ 250 million to win Indian solar energy contracts and concealing the scheme from the US investors from whom they sought to raise funds. 

USIDFC said the bribery allegation does not implicate the Adani subsidiary involved in the Sri Lankan project.

A USIDFC official was quoted by Bloomberg stating that the project has not reached financial close or signed a loan agreement and that it would conduct due diligence to ensure all aspects of the project meet its rigorous standards before any loan disbursements are made.

Meanwhile, the shares of six Adani Group firms, out of 11 listed companies, dipped in the mid-session deals. Adani Green Energy fell more than 2 percent. Adani Ports and Special Economic Zone was down by 1.13 percent; Adani Power dipped by 1.05 percent and Adani Energy Solutions fell 1.11 percent.