Adani Ports to Finance CWIT Project Through Internal Funds, Withdraws DFC Loan Request

Adani Ports has announced that it will finance the Colombo West International Terminal (CWIT) project in Sri Lanka through internal accruals and a capital management plan, withdrawing its loan request from the DFC, the company said in a statement to the stock exchanges.

Adani Ports’ Change in Financing Approach 

Adani Ports has now decided to withdraw its request for the loan from the DFC and instead finance the project using its internal accruals and a capital management plan.

Providing an update on the project status, the company stated that the CWIT project in Sri Lanka is progressing well and is on track for commissioning by early next year.

This decision marks a shift from the previously planned external financing approach.

Background on the CWIT Project

As per news reports, the U.S. Development Finance Corporation (DFC) had previously approved a loan in 2023 to support the development of the Colombo West International Terminal (CWIT) at the Port of Colombo.

The loan was part of a larger financing plan for the project, which is being developed through a consortium that includes Sri Lankan conglomerate John Keells Holdings, the Sri Lanka Ports Authority (SLPA), and Adani Ports & Special Economic Zones Limited (APSEZ).

Share Price Performance

On December 11, 2024, Adani Ports and Special Economic Zone’s share price (NSE: ADANIPORTS) was trading 1.14% lower at ₹1,234.55 at 11:30 AM. The stock opened at ₹1,254.10, slightly higher than its previous close of ₹1,248.75.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.