The US government recently granted a substantial loan of up to $553 million to the Adani Group for a container terminal project in Sri Lanka. This decision followed a thorough examination of allegations made by Hindenburg Research, a prominent short-seller, accusing Indian billionaire Gautam Adani of corporate fraud. Despite the seriousness of the claims, a senior US official has disclosed that the government concluded these allegations were not relevant to the loan extension.
The Adani Group, led by Gautam Adani, is a major conglomerate with diverse business interests, and the loan from the US is aimed at supporting the development of a crucial container terminal in Sri Lanka. The decision to proceed with the loan suggests that, in the eyes of US authorities, the allegations made by Hindenburg Research did not present a significant obstacle or cause for concern.
The nature of the accusations against Adani by Hindenburg Research remains unspecified in the provided information, leaving room for speculation about the intricacies of the situation. Nevertheless, the US government’s confidence in proceeding with the loan indicates a certain level of assurance in the integrity and viability of the Adani Group’s venture in Sri Lanka.
Update 25th, November 2024
The US International Development Finance Corp. (DFC) has not finalized a $500 million loan for an Adani Group-backed port project in Sri Lanka. The agency is still reviewing the project after allegations of bribery against Adani’s founder and top executives.
A DFC official stated, “We are continuing due diligence to ensure the project meets our strict standards before approving any funds.” The loan agreement has not yet been signed, and the project hasn’t reached financial closure.
The DFC official clarified that the bribery allegations do not involve the Adani subsidiary linked to the Sri Lanka port project.
“We are committed to ensuring our projects and partners meet the highest standards of integrity and compliance,” the official said.
Meanwhile, Sri Lanka is reviewing Adani Group’s proposed wind power projects in the country. According to The Sunday Morning, the cabinet is expected to discuss the plans in the coming weeks. A spokesperson for the Ceylon Electricity Board said the government is assessing all aspects of the project, including its financial feasibility and environmental impact.
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