19 June 2020
South African bank Investec has become the 68th major company to rule out involvement in the controversial Adani Carmichael coal project, while also distancing itself from Adani’s Abbot Point coal port, despite arranging a bond issue for the port back in 2017.
This comes just as Abbot Point, located in the Great Barrier Reef World Heritage Area, looks to refinance $250 million in debt, with a total of $1 billion coming due in the next two years.
“In line with our commitment to climate change, Investec has not lent to the Carmichael coal project and can confirm we have no loan exposure to Adani Abbot Point Terminal (AAPT). We had a historic hedging facility with AAPT which will not be renewed.”Investec Bank
Investec, together with Haitong and Stifel were the arrangers of a US$500 million bond issue for Abbot Point in December 2017. The other two banks are now part of a quartet, with CLSA and Emirates NBD Capital, looking to refinance the debt Abbot Point has due in 2020 and 2021.
Bushfire survivors call on Korean creditors to walk away
Meanwhile, another group of investors linked to Abbot Point were feeling the heat.
Market Forces, together with Bushfire Survivors for Climate Action, wrote to five Korean investors who have outstanding loans with Abbot Point coal port (Mirae Asset Daewoo, Industrial Bank of Korea, Samsung Securities, Hanwha Investment & Securities, Korea Investment & Securities). The letter explained the essential role that Abbot Point plays in the climate-destroying Carmichael coal project, and requested that these investors make a commitment of providing no additional funds to Abbot Point.
“As bushfire survivors we have seen and felt the impacts of climate change, caused mainly by burning fossil fuels…We are asking Korean investors not to fuel even worse bushfires in the future. Please walk away from Abbot Point and the Adani coal project”Jo Dodds, President Bushfire Survivors for Climate Action
The letter received coverage in the Korean media, and we are now awaiting reply. The funding of a coal port linked to a massive new thermal coal development is a direct contradiction of the Korean Government’s plans to phase out Korea’s financing of coal.
Take action. Contact Abbot Point’s creditors and Adani’s bond arrangers to explain that funding any Adani company means supporting the disastrous Carmichael coal project: