Indian conglomerate Adani Group, which has been at the centre of insurance controversy, has secured an AU$330 million (US$207 million) private credit loan to refinance debt for its coal port operations in Northern Queensland, Bloomberg reported.
The loan has been extended to Adani’s North Queensland Export Terminal Pty Ltd by direct lender King Street Capital Management and asset manager Sona Asset Management. The six-year facility will be used to repay debt maturing in June, according to sources familiar with the matter.
This financing move follows financial challenges for Adani, including allegations against its founder, Gautam Adani, in a US bribery case. The company’s stocks and bonds have largely rebounded after initial declines.
Adani’s coal port business previously faced difficulties securing funding from traditional banks due to concerns over fossil fuel financing.
Last year, Adani secured an AU$500 million loan from Farallon Capital Management and King Street Capital Management, which helped the company refinance existing debts.
The North Queensland Export Terminal, formerly known as Abbot Point, has operated under a 99-year lease since Adani acquired it from the Queensland government in 2011. It serves as a hub for coal exports, facilitating shipments from multiple mining companies, including Glencore. Some of these contracts are set to expire before 2029, which may impact future export volumes. If these contracts are not renewed, Adani may need to secure additional coal shipments from its Carmichael mine to compensate for potential losses.
According to the Financial Review, the Carmichael mine, located in Queensland’s Galilee Basin, has been a focal point of environmental and financial controversy since its inception. Originally planned as a large-scale project with a capacity of up to 60 million tonnes per year, it was ultimately developed in a smaller, staged manner to reduce financial and logistical barriers. Currently, the mine produces approximately 11 million tonnes of coal annually, with exports routed through the North Queensland Export Terminal.
Adani has continued to secure financing to support its operations.
Representatives from Adani Group, Bravus Australia, King Street, and Sona declined to comment on the transaction.
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