An entity majority-owned by billionaire Gautam Adani has withdrawn from a $553 million loan agreement with the US International Development Finance Corporation (DFC) for a port terminal in Colombo, Sri Lanka. According to a filing by Adani Ports and Special Economic Zone Ltd., the project will now rely on internal funding and capital management plans.
The decision comes as Adani, Asia’s second-richest man, faces indictment in US courts over allegations of bribery and fraud tied to solar energy contracts. The company denies the charges.
The DFC loan, signed last year, aimed to provide an alternative to China's infrastructure investments in developing nations. Construction on the terminal has already commenced, involving local Sri Lankan partners.
Adani Group has publicly maintained its business operations, with its founder recently pledging significant domestic investments alongside Indian Prime Minister Narendra Modi. Meanwhile, DFC officials are reviewing the indictment's implications, and other Adani projects, such as a $2.6 billion proposal in Kenya, have been canceled following the allegations.
