New Delhi, April 25 Fitch Ratings has characterised Adani Ports and Special Economic Zone Limited's (APSEZ) acquisition of the North Queensland Export Terminal in Australia as credit neutral, while highlighting its positive strategic implications.
The global ratings agency believes the acquisition will support APSEZ's efforts toward international diversification, a key long-term goal for the company.
Announced on April 17, 2025, the acquisition involves APSEZ issuing new equity shares to the current shareholders of North Queensland Export Terminal (NQXT), who also belong to the same promoter group as APSEZ. The deal is subject to regulatory and shareholder approval.
Fitch expects APSEZ's financial stability to remain unaffected by the acquisition, forecasting gross leverage to stay around 3x from FY26 to FY29. The transaction is anticipated to increase the company's global EBITDA contribution from 4 per cent to 10 per cent, marking a significant step in its global expansion strategy.
Additionally, the acquisition slightly raises the share of coal in APSEZ's cargo mix, though this is expected to decline over time due to stronger growth in containerised and other non-coal segments.
Operationally, the impact on NQXT is expected to be minimal, as APSEZ already operates the terminal. The terminal, with an annual coal throughput of 35 million tonnes and a current utilisation rate of 70 per cent, requires limited capital expenditure in the medium term. Moreover, long-term take-or-pay contracts and a remaining lease life of 85 years provide strong cash flow visibility for APSEZ.
The acquisition also poses minimal refinancing risk, with NQXT holding no debt maturities until 2030. Its existing debt structure includes conservative features such as restrictions on additional borrowing and controlled cash outflows, further ensuring financial discipline.
The importance of Fitch's view lies in the agency's global influence on investor sentiment, particularly in emerging markets. As a major credit rating agency, Fitch's assessments are closely watched by global investors, financial institutions, and policymakers. A credit-neutral but strategically supportive view from Fitch signals that the acquisition is a calculated move that strengthens APSEZ's long-term business profile without jeopardising its financial health.
While the acquisition may not immediately impact APSEZ's credit rating, Fitch's analysis affirms the strategic rationale behind the move, reinforcing investor confidence in the company’s global growth ambitions.
The North Queensland Export Terminal (NQXT) is located in the Port of Abbot Point, approximately 25 kilometres north of Bowen, Queensland, Australia. It's the most northerly deepwater coal export terminal in Australia.
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