North Queensland Export Terminal, a unit of the Adani Group that controls a major Australian coal port, has secured a private credit loan of approximately A$500 million (USD 333 million), according to media reports.
The loan was provided by Farallon Capital Management and King Street Capital Management. Representatives from Adani, Farallon, and King Street have not commented on the matter so far.
In recent years, Australian coal-related companies have increasingly turned to private loans with higher interest rates due to global banks' growing reluctance to finance commodity-related companies, driven by environmental, social, and governance (ESG) concerns. Earlier this year, Sydney-based coal miner Whitehaven Coal obtained a USD 1.1 billion loan to acquire two mines, attracting 17 private credit lenders but only one bank. Similarly, a consortium led by Golden Energy and Resources, controlled by Indonesia’s Widjaja family, has been exploring direct lending options.
The funds from the loan to North Queensland Export Terminal will be used to refinance existing debt, the sources said. An Adani Group representative declined to provide further details.
North Queensland Export Terminal is part of Bravus Australia, an Adani Group company that offers integrated energy and infrastructure services in Australia. The terminal has been operating under a 99-year leasehold acquired from a Queensland Government entity since June 2011.
The Adani Group, led by Gautam Adani, is one of India’s largest thermal power producers with numerous coal-based plants. Despite facing a significant setback from a critical short-seller report last year, the group has made a substantial recovery. In December, Adani Group announced plans to invest USD 100 billion in green energy over the next decade, aiming to achieve net-zero emissions by 2050.
This latest financing deal underscores the ongoing challenges and strategic adjustments faced by coal-related businesses amidst shifting global financial and environmental landscapes.
