Adani Ports withdraws DFC funding request for Colombo port project

The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, November 22, 2024. REUTERS

India's Adani Ports and Special Economic Zone Ltd said on Tuesday it would finance its Colombo port terminal project through internal accruals and a capital management plan, withdrawing its request for funding from the US International Development Finance Corp (DFC).

DFC last year said it would provide $553 million in financing for the port terminal project, which is partly owned by the Adani Group.

The company, however, said the Colombo West International Terminal project is progressing well and is on track for commissioning by early 2025.

DFC did not immediately respond to a Reuters request for comment.

Ports-to-edible oils Adani Group, controlled by Indian billionaire Gautam Adani, holds a 51% stake in the west container terminal of the port, which also has a terminal run by China Merchants Port Holdings Co Ltd.

Sri Lankan conglomerate John Keells Holdings owns 34% of the terminal and the rest is held by the state-run Sri Lanka Ports Authority.

Last month, US authorities accused Adani Group Chairman Gautam Adani and seven others of being part of a $265 million scheme to bribe Indian officials, and of misleading US investors while raising funds there.

The ports-to-power conglomerate has termed the allegations "baseless" and said it would seek "all possible legal recourse".