Adani Close to Seal $332 Mn Debt Deal for Its Queensland Port

Adani Group is reportedly close to securing a $332 million debt deal for its Abbot Point coal terminal in Queensland, a state in northeastern Australia. This deal is significant as it tests lenders' renewed interest in financing fossil fuel projects.

It's part of Adani's broader strategy to raise funds and continue its operations in Australia, despite facing challenges like the recent short-seller report.

The company is said to be in advanced talks with private lenders to provide new debt to settle the $332 million obligation its Abbot Point coal terminal must pay before June. There is no guarantee the talks will be successful.

This private credit loan is for Adani Group's North Queensland Export Terminal (NQXT), which operates the Abbot Point coal terminal in Queensland. The loan is reportedly being provided by Farallon Capital Management and King Street Capital Management.

North Queensland Export Terminal (NQXT) owns and operates a 50 million tonnes per annum coal export terminal under a long-term lease from the Queensland state government. The terminal is a key asset for Adani's coal export activities, particularly from the controversial Carmichael mine.

The North Queensland Export Terminal (NQXT) is controlled by the Adani family trust and plays a crucial role in Adani Group's operations in Queensland. The recent $332 million debt deal is directly related to NQXT, as the funds raised will be used to refinance existing debt and support the terminal's operations

This possible deal is part of Adani's strategy to refinance existing debt and continue its operations despite global banks becoming more reluctant to finance commodity-related companies due to ESG (Environmental, Social, and Governance) concerns.

The loan will be significant as it tests lenders' renewed interest in fossil fuel financing, especially after Adani Group faced a scathing short-seller report last year. Despite this, the group has announced plans to invest $100 billion in green energy over the next decade, aiming to become a net zero emitter by 2050.