MUMBAI: Following US securities and wire fraud allegations, Adani Ports and Special Economic Zone, led by Gautam Adani, has withdrawn from a financing arrangement with a US agency for a Sri Lankan port terminal project, opting instead to utilise its own resources.
In light of the US indictment, securing loans from American institutions has become challenging. In Nov 2023, US agency International Development Finance Corporation (IDFC) had agreed to provide a $553 million loan for developing the Colombo West International Terminal - a deep-water container facility at Sri Lanka's Port of Colombo.
Adani Ports said the project will now be funded through internal resources and its capital management plan. It added that it has withdrawn its financing request from IDFC. The project, initially scheduled to begin operations this month, is "progressing well and is on track for commissioning by early 2025", Adani Ports said. Following the US indictment in Nov, IDFC had said that it had not disbursed the $553 million loan and was conducting additional due diligence.
The financing withdrawal indicates potential funding limitations from the US for Adani Group following the US charges. Despite these challenges, Gautam Adani maintained that "every attack makes us stronger" while consistently denying any misconduct.
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