Adani Ports Withdraws from US Financing Deal

Following allegations of US securities and wire fraud, Adani Ports and Special Economic Zone, led by Gautam Adani, has withdrawn from a financing arrangement with the US International Development Finance Corporation (IDFC) for a Sri Lankan port terminal project. Instead, the company has opted to utilize its own resources for the development of the Colombo West International Terminal.

The IDFC had agreed to provide a $553 million loan for the deep-water container facility at Sri Lanka's Port of Colombo in November 2023. However, due to the US indictment, securing loans from American institutions has become challenging for Adani Ports. The company stated that the project will now be funded through internal resources and its capital management plan.

Despite the setback, Adani Ports assured that the project, initially scheduled to begin operations this month, is "progressing well and is on track for commissioning by early 2025". The withdrawal of the financing request indicates potential funding limitations from the US for the Adani Group following the US charges. Gautam Adani maintained that "every attack makes us stronger" while consistently denying any misconduct.