Adani ends US tie-up on Colombo port meant to counter China

Move to exit loan deal comes as Indian billionaire indicted in US on bribery charges

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MUMBAI - Embattled billionaire Gautam Adani has pulled out of a loan deal with an American agency to fund a port terminal in Sri Lanka's capital, ending an agreement hailed a year ago as an effort by India and the US to counter China's growing influence in the region.

An entity majority-owned by Adani, who was indicted in US courts in November, said in a company filing on Dec 10 that it was exiting talks on a loan valued at US$553 million (S$742 million) from the US International Development Finance Corporation (DFC).

After the bribery allegations came to light in November, the US agency said it was still conducting due diligence and had not reached a final agreement on the loan.

"The project will be financed through the company's internal accruals and capital management plan," the filing said, referencing the financing deal for a port terminal in Colombo being developed by Adani Ports and Special Economic Zone. "We have withdrawn our request for financing from the DFC."