Min­ing gi­ant sells debt

Whitsunday Times - - NEWS -

ADANI has re­struc­tured the debt on the Ab­bot Point coal ter­mi­nal.

Korean me­dia has re­ported that Mi­rae As­set Dae­woo Co bought the en­tire $330 mil­lion se­nior debt.

Adani bought the port in 2011 for about $2 bil­lion and it was re­cently as­sessed at $2.3 bil­lion, ac­cord­ing to the Korean re­ports.

The com­pany had been search­ing since last year for a buyer of its debt and was weighed down by per­cep­tions that its Galilee Basin coal pro­ject would not go ahead, lead­ing to con­cerns about the vi­a­bil­ity of the port.

The deal is seen as a sig­nif­i­cant win for the com­pany which has faced years of le­gal and po­lit­i­cal road­blocks.

Korean re­ports said the se­nior se­cured loan, sold to re­fi­nance debt of the coal ter­mi­nal in Aus­tralia, was ex­pected to of­fer five per cent range an­nual re­turns for a seven-year in­vest­ment pe­riod.

Ab­bot Point coal ter­mi­nal is op­er­ated by Adani Ab­bot Point Ter­mi­nal Pty Ltd.

In­dia’s Adani Group bought a 99-year lease for the ter­mi­nal from the Queensland gov­ern­ment in 2011.

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