Adani Ports withdraws DFC funding request for Colombo port project (updated)

China Merchants Port Holdings

10/12/2024 18:08

(Adds details, background from paragraph 3 onwards)
       Dec 10 (Reuters) - India's Adani Ports and Special Economic Zone Ltd  APSE.NS  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  0144.HK . 
    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".

 (Reporting by Nilutpal Timsina in Bengaluru; Editing by Alan Barona)
 ((Nilutpal.Timsina@thomsonreuters.com; +91 86382 04706))