Adani hires advisers to sell Abbot Point coal terminal

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Adani hires advisers to sell Abbot Point coal terminal

Indian conglomerate Adani Group has hired Morgan Stanley to sell part of its stake in the Abbot Point coal port, Australia's most northerly coal port, in Queensland.

Adani plans to build a new terminal at Abbot Point to handle coal from its proposed Carmichael coal project, potentially one of the world's biggest new coal mines.

An expansion of the port, however, would likely lead to more ships navigating the sea lanes near the World Heritage-listed Great Barrier Reef, which is causing a lot of controversy in Australia.

Morgan Stanley wanted to separate from the controversy by clarifiying that the bank will not finance the project. "Morgan Stanley will not lend to or invest in the expansion of Abbot Point," it said. A Morgan Stanley spokesman in Australia said the bank was "not in the business of providing greenfield project financing in Australia."

Adani said in a statement that funds raised from the sale would be used to finance the expansion. Adani also said that any partial sale of Adani's current holdings at the port would in fact be used to deliver the port's expansion.

JPMorgan Chase, Citigroup and Goldman Sachs have already said they wouldn't support new investment at Abbot Point potentially making complicated the search for funding by Adani and India's GVK, who want to export coal from nearby mines.

Josh Euler, speaking on behalf of GVK and Hancock, said the proposed expansion had been through a comprehensive environmental assessment overseen by state and national governments.

List of country news

Country news

  • November 04, 2014

    EOIs sought for Canberra light rail PPP

    The Capital Metro project provides a unique opportunity to shape Australia's capital city. Read more
  • November 07, 2014

    AMP Capital Infrastructure Debt Fund II beats target with US$1.1 billion final close

    AMP Capital's Infrastructure Debt Fund II (IDF II) has completed its final close, raising US$1.1 billion during its fundraising period. Read more
  • November 14, 2014

    Palisade's Diversified Infrastructure Fund acquires 32% of ANZ Terminals

    Palisade Investment Partners Limited, a specialist, independent infrastructure manager, has achieved financial closure to acquire 32% stake in ANZ Terminals. Read more
  • November 20, 2014

    China Merchants and Hastings sign partnership

    Infrastructure manager Hastings and China Merchants Investment Development Company Limited (CMID) have signed in Camberra a partnership agreement to invest together globally in infrastructure projects. Read more
  • November 26, 2014

    AMP Capital changes leadership team

    AMP Capital has announced changes to its leadership team to reflect the business's updated growth strategy and to continue to meet the needs of clients around the world. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.