Billionaire's mine financing hurdles fuel bondholder jitters
SYDNEY – The Indian conglomerate Adani Enterprises is learning how one financing problem can lead to headaches for debt investors elsewhere as it tries to secure money for one of the world’s biggest coal mines.
Three of China’s largest banks this week ruled out any involvement in financing the mine in Australia’s Queensland state. That fanned investor concerns about debt elsewhere in the company’s businesses in the South Pacific nation. Dollar bonds from wholly owned unit Adani Abbot Point Terminal – which oversees a deep water port on the coast of Queensland – sunk to fresh lows after the news.
While Adani’s port business is financed separately from its mining division, the company intends to transport coal sourced from its planned Carmichael mine by rail to the export terminal at the port.
Industrial & Commercial Bank of China, Bank of China, and China Construction Bank all said this week they won’t loan money to develop the Carmichael mine. They join a burgeoning list of lenders including Goldman Sachs Group and Australia’s four major banks in ruling out providing loans for the project, which has faced opposition from environmentalists who say it will increase carbon pollution and endanger the health of the state’s Great Barrier Reef.
Adani Abbot Point’s notes due 2022 have dropped to 97.5c on the dollar since issuance at about 99.4c last week, data compiled by Bloomberg show.
Adani plans to build a 388-km rail line to link the mine to the port, which it acquired for A$1.8-billion in 2011. Abbot Point has one terminal and is being expanded to 60-million tons from 25-million tons currently, according to its website. The terminal has exported coal since 1984, when it was commissioned.
Adani’s Australian spokesman didn’t immediately respond to a voice mail seeking comment.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...
VISIT SHOWROOM
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
