Pimco will manage Adani Ports ’future investment in Australia’s controversial coal project

Pacific Investment Management Co., which is trying to disarm its investment portfolio, has stopped participating in the offer of Adani Ports & Special Economic Zone Ltd bonds. because of its links to Australia’s controversial coal project, according to an expert.

Pimco, which owns Germany’s Allianz SE, did not take part in the sale of Adani Ports’ $ 500 million bonds in January, the man said, while releasing existing holdings in Ports Adani ran to maturity. A spokesman from Allianz declined to comment.

Australia’s Adani mining unit – last year renamed Bravus Mining & Resources – has been strongly opposed to environmental groups over Carmichael’s 10-million-tonne annual coal-fired coal project. The company’s plans to transport the coal to Abbot Point’s export destination – which is largely controlled by the Adani group – through a new 200-kilometer (124-mile) rail link are ready to open an area of ​​previously unpaved shrubland. to mining.

Adani Ports was unaware of Pimco’s position on participating in its bond offers, a spokesman for the group said by email. The company was “committed to strengthening ESG performance across their operating ecosystem,” he said.

Allianz belongs to a group of insurers and pension funds that have pledged to run carbon-neutral investment packages by 2050 as part of the Net-Zero asset owner consortium. In January, the group said it may cut investments in the stocks and bonds of companies that were not making enough progress toward that goal.

Deutsche Bank AG recently withdrew from an Adani Ports bond offer due to environmental concerns, the Economic Times newspaper reported in January, citing people familiar with the matter. Adani Ports said the outlay attracted strong interest from institutional investors across Asia, EMEA and the US, achieving a cross-membership ratio of 4.2 times.

Adani is self-funding Carmichael after local banks refused to back down, while several companies, including Greyhound Australia and engineering consultant Aurecon, have refused to do contract work for the project, which has become a lightning rod for climate activists in Australia amid its wider backlash against the most polluting fossil fuels.

Adani Ports shares jumped 5.2% in Mumbai on Monday.

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