The Adani Group is in talks with global credit funds to raise close to $400 million in debt against the assets of a coal port located in Australia. Billionaire Gautam Adani-led group is planning to raise debt by mortgaging North Queensland Export Terminal (NQXT) which makes significant exports of coal from its infamous Carmichael mine, The Economic Times reported citing sources.
According to reports, Adani promoters own 100 per cent stake in North Queensland Export Terminal. The conglomerate has already been provided with two indicative term sheets from potential lenders and is in discussion with various global credit funds to raise money.
"The group is trying to raise the funds against the cash flows of NQXT with an objective to upstream the funds for further payments elsewhere," ET quoted a person as saying.
Farallon Capital, a hedge fund, is amongst the potential lenders in talks with Adani Group.
In December last year, NQXT had repaid debt worth $500 million which was funded by internal accruals and with aid from promoters in absence of refinancing options.
"Cash flows of the port have improved significantly in the last one year, and it has an EBITDA (operating profit) of around AUD 200 million (equivalent to Rs 1,115 crore)," ET quoted a person as saying.
The coal port runs under a lease until 2110 which is offered by the Queensland state government. The terminal is located 25 kms north of Bowen in northern Queensland and deals with 50 million tonnes of coal exports per annum.
Due to the rising environmental concerns funding of the port is facing complications, the report added. Meanwhile, Adani Group is hoping to collect close to $1 billion in upcoming weeks for repayment of $500-million loan taken for the acquisition of ACC and Ambuja Cements.
Adani Group’s plans to raise capital were hindered after the US-based short seller Hindenburg Research alleged Adani Group of fraud, stock price manipulation and improper use of tax havens. Adani Group has $150 billion in market value since the report got published in January.
