Ask Korean investors not to take on Adani’s debt
Adani has finally refinanced its Abbot Point coal port near Bowen in Qld. A Korean asset manager has bought A$330 million worth of debt intending to sell it on. Put nine Korean insurers and major investors on notice here.
News broke on Tuesday* that the Indian coalmining giant Adani has finally refinanced its Abbot Point coal port near Bowen in Queensland.
Korean asset manager Mirae Asset Daewoo (MAD) bought A$330 million worth of debt, and now intends to sell it it on to Korean insurance companies and other investors. It’s critical that any company considering investment in Adani’s Australian coal exports knows just what they’re getting themselves into. And we’ve made it possible for you to put nine of Korea’s insurers and major investors on notice.
As unhappy as we are to see someone back the Abbot Point coal port, the fact that Mirae Asset Daewoo has come in to do what is usually the job of major banks says everything about how toxic Adani’s coal export plans are. This is the first time Mirae Asset Daewoo has taken on a complete debt financing for a “large-size overseas infrastructure asset” and it took almost a year for Adani to find a backer.
And with good reason knowing how risky Abbot Point is. The amount of coal being shipped via Abbot Point is predicted to fall rapidly from 2020, as existing contracts expire.
Without the Carmichael mine Adani wants to build it is unlikely Abbot Point will remain a viable asset, according to the Institute for Energy Economics and Financial Analysis.**
MAD is gambling on Adani’s Carmichael coal mine going ahead. Email the Korean insurance companies MAD is trying to sell Adani’s debt to. Make sure they know the #StopAdani campaign will fight until the Carmichael coal project is stopped.
If any Korean insurers do buy this debt from MAD, they’ll be bucking a massive international trend. While Adani completed its Abbot Point refinancing, the world’s biggest reinsurance company, SwissRe, announced*** it will no longer insure thermal coal mines or power stations, or companies more than 30% exposed to thermal coal.
The entire insurance industry is starting to shift away from coal. With enough pressure, we can convince key Korean insurance companies what a foolish business move it is to take on Adani’s coal port debt. Contact them now.
We will fight Adani’s Carmichael coal project every step of the way until it is finally stopped. Thank you for taking action to help move the world beyond coal.
Thanks for your support,
Julien, at Market
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