The Adani Group’s entire A$3.5 billion (Rs 178 billion) debt-funded ‘investment’ in Australia is gravely at risk, the US-based Institute for Energy Economics and Financial Analysis (IEEFA) said on Monday.
In a new report it details how Adani’s Abbot Point Coal Terminal has excessive financial leverage, negative shareholders equity and runs the risk of becoming a stranded asset if Adani’s Carmichael mine does not get a $1 billion Australian subsidy.
The Abbot Point Coal Terminal is due for a $1.5 billion debt refinancing next year and a cumulative debt refinancing of $2.11 billion by 2020.
Currently, operating at just over 50 per cent capacity, the Abbot Point Coal Terminal needs the Carmichael mine to fill the gap created as its current take-or-pay contracts progressively expire. Read More…