Adani Group, a multinational conglomerate, is reportedly close to securing a $332 million debt deal for its North Queensland Export Terminal (NQXT), which operates the Abbot Point coal terminal in Queensland, Australia. The private credit loan is being provided by Farallon Capital Management and King Street Capital Management, and is intended to settle the terminal’s debt obligation before June. The loan will be used to refinance existing debt and support the terminal’s operations.
The Abbot Point coal terminal is a key asset for Adani’s coal export activities, particularly from the controversial Carmichael mine. The terminal is controlled by the Adani family trust and plays a crucial role in the company’s operations in Queensland. The debt deal is significant as it tests lenders’ renewed interest in financing fossil fuel projects, despite growing concerns over environmental, social, and governance (ESG) issues.
Adani Group has faced challenges in recent years, including a scathing short-seller report last year. However, the company has announced plans to invest $100 billion in green energy over the next decade, aiming to become a net zero emitter by 2050. This 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.
The loan is seen as a test of lenders’ willingness to finance fossil fuel projects, and may have implications for the future of coal mining and energy production in Australia. Adani Group’s ability to secure the loan may also be seen as a vote of confidence in the company’s plans to transition to green energy.