Adani seeking $2.3b in debt financing for Australian coal mines

A stacker-reclaimer operates next to stockpiles of coal as a rainbow forms in a spraying jet of water at the Newcastle Coal Terminal in this aerial photograph taken in Newcastle, Australia, on Saturday, Oct. 3, 2015. Photographer: Brendon Thorne/Bloomberg

Indian conglomerate Adani Enterprises Ltd. needs as much as A$3 billion ($2.3 billion) in debt financing to help start producing Australian coal from one of the world’s largest mines, after major banks from Sydney to New York said they don’t want to lend to polluting fossil-fuel projects.

The company is seeking A$2 billion to A$3 billion from lenders, including from banks in China, for the first phase of developing the Carmichael mine and a rail line in Australia’s northeastern state of Queensland, according to a person with knowledge of the matter. In addition, the firm plans to inject as much as A$3 billion in equity funding for the project, the person said, asking not to be identified because the details are private.

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