Shares of Adani Ports and Special Economic Zone Limited experienced a significant uptick, rising over 2% on Wednesday following the announcement by the US International Development Finance Corporation (DFC) regarding its funding commitment to a project co-owned by the Adani Group.
The US International DFC has pledged an investment of $553 million in the Colombo port terminal project, a joint venture involving India’s leading port operator Adani Ports and SEZ Ltd, Sri Lanka’s major enterprise John Keells Holdings (JKH), and the Sri Lanka Ports Authority.
In a statement, Adani Ports expressed its enthusiasm about the US government’s development finance institution supporting the venture. The investment marks a pivotal moment, being the first instance where a US government agency funds an Adani project, underlining the international confidence in the group’s investment capabilities and their capacity to establish a world-class container facility in Colombo Port.
This development carries immense significance, especially in light of allegations made by US short-seller Hindenburg Research, who accused Adani of accounting fraud and artificial inflation of its share prices. Adani Group vehemently denied these accusations, countering the negative impact these claims had on its market value.
The Colombo West International Terminal project, upon completion, is poised to transform the socio-economic landscape, not just in Colombo but across Sri Lanka. It will generate numerous direct and indirect employment opportunities and significantly enhance Sri Lanka’s trade and commerce ecosystem. The Port of Colombo, being the largest and busiest transshipment port in the Indian Ocean, has been operating at over 90% capacity since 2021, indicating the necessity for additional capacity. The new terminal will cater to growing economies in the Bay of Bengal, capitalizing on Sri Lanka’s strategic location on major shipping routes and its proximity to these expanding markets.
As of 2:40 pm, Adani Ports’ shares were trading 2.59% higher at ₹818.20 apiece on the NSE, underscoring investor confidence in the company’s future prospects and strategic collaborations.
