Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

hatrack

(59,442 posts)
Tue Aug 4, 2020, 09:40 AM Aug 2020

Two Korean Banks Cut Off Further Financing For Adani Coal Project In Queensland

A second major Korean backer of Adani’s Australian coal operation has said it won’t provide any more financial support for the controversial miner, which faces potential debt difficulties related to its Abbot Point export terminal.

Guardian Australia has seen a letter from Korean brokerage firm Hanwha Securities – sent to the climate group Tipping Point on 30 July – which stated the firm would cease financing Adani’s coal projects.

Last month, the ratings agency S&P Global downgraded its outlook on Adani’s Abbot Point terminal to “stable” after the company’s efforts to refinance debts were hindered by the coronavirus pandemic. The terminal’s Indian parent company, Adani Enterprises, urgently injected $100m needed to meet repayments due in May.

Adani Abbot Point has also drawn down on about $170m of shareholder loans to pay off debt – owed to Commbank and Westpac – that was due to mature in November. Adani plans to export coal from its under-construction Carmichael mine from Abbot Point, which has total debts of about $1.5bn. Those debts include about $1.1bn due for repayment by December 2022, according to S&P Global.

EDIT

https://www.theguardian.com/business/2020/aug/03/adani-second-major-korean-brokerage-withdraws-financial-backing-for-miners-coal-projects

Latest Discussions»Issue Forums»Environment & Energy»Two Korean Banks Cut Off ...