India’s Adani Ports and Special Economic Zone Ltd (APSEZ) has sold its Australian rail logistics unit, Bowen Rail Company Pty Limited (BRCPL), to Adani Global Pte Limited for an undisclosed amount subject to Australian Regulatory approval. BRCPL transports coal produced from the Carmichael mine in Australia. As per the company, it aims to become the first global carbon-neutral port company by 2025 with the entire port cargo operations powered by renewable energy and the sale is its first divestment in an effort to become carbon neutral and improve its environment, social and governance (ESG) ratings. The ESG risk evaluation is seen as a key criteria in global financial markets and is important to APSEZ’s plans of raising dollar debt. At present, 69% of APSEZ’s long-term debt is in US dollars which includes its three recent offshore bond issuances worth $1.55bn. The company said in its annual report, “The ESG risks occupy a central place in our assessment process as they can have a significant impact on the company’s business model and value drivers”
In related news, Adani group is set to start shipping coal from its Carmichael, Australia project after a long wait for approvals and in the face of protests. The high quality coal from the project will be supplied to power plants in India. Adani Ports’ 3.375% 2024s were stable at 104.01 and its 3.1% 2031s were down 0.29 to trade at 94.08 cents on the dollar in the secondary markets.
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