After Samsung group company Samsung Securities pledged to cease its financial backing for Adani's Australian coal operation, another Korean company Hanwha Securities have backed out from financing its coal projects amid environmental issues related to Carmichael mine.
With the financial backers pulling away, the India tycoon is now staring at debt difficulties concerning the company's Abbot Point export terminal, The Guardian Australia reported.
In view of this, S&P Global recently downgraded its outlook on Adani's Abbot Point terminal to "stable". As the company faces difficulties in raising fresh capital for the terminal, Adani Enterprises, the holding company, had recently pumped in $100 million in May to meet the debt repayments. Around $170 million was also drawn down from shareholders' loan repay debts of Commbank and WestPac.
The development comes after anti-Adani group, Galilee Blockade, had last week organised a protest at Hanwha Q Cells' Sydney office. "[Hanwha Securities] undertook its own review and eventually approved the investment for the terminal in the form of debt financing," the company's chief executive Kwon Hee-Baek said in the letter to Tipping Point, the news daily reported.
This has not only delayed refinancing of its Abbot Point project but has also given time to environmental activists more time drum-up support from investors. Last month, Samsung Securities withdraw its financial support for Adani's project as protestors started targetting its electronics branch.
Established in 1962, Hanwha Investment & Securities provides comprehensive asset management services. Its Hanwha Q Cells brand is a leading global solar company in the US, Australia, UK, Japan and Korea.
Gautam Adani-led Adani Group entered Australia in 2010 with the purchase of the greenfield Carmichael coal mine in the Galilee Basin in central Queensland, and the Abbot Point port near Bowen in the north. The massive coal mine in Queensland state has been a controversial topic, with the project expected to produce 2.3 billion tonnes of low-quality coal.