Fitch Ratings Highlights Strategic Value Of Adani Ports’ Acquisition Of NQXT

Fitch Ratings has assessed Adani Ports and Special Economic Zone Limited’s (APSEZ) acquisition of the North Queensland Export Terminal (NQXT) as credit neutral, while emphasising its positive strategic value for the company.

The acquisition, announced on 17 April 2025, will play a significant role in APSEZ’s long-term goal of international diversification.

By acquiring NQXT, APSEZ is expanding its footprint globally, which is crucial for its future growth.

Under the deal, APSEZ will issue new equity shares to the existing shareholders of NQXT, who are part of the same promoter group.

This acquisition is still subject to regulatory and shareholder approval before finalisation.

Fitch expects APSEZ’s financial position to remain stable following the acquisition.

The ratings agency forecasts that the company’s gross leverage will remain around 3x through FY26 to FY29.

Moreover, the acquisition will likely increase APSEZ’s global EBITDA contribution from 4% to 10%, which represents a major milestone in its international expansion efforts.

While the acquisition does slightly increase the share of coal in APSEZ’s cargo mix, this is expected to decrease over time due to stronger growth in non-coal and containerised cargo segments.

The operational impact on NQXT is likely to be minimal, given that APSEZ already runs the terminal.

With an annual coal throughput capacity of 35 million tonnes and a utilisation rate of 70%, the terminal requires limited capital expenditure in the medium term.

Additionally, its long-term take-or-pay contracts and an 85-year remaining lease life offer strong cash flow visibility for APSEZ.

Fitch also noted that the acquisition presents minimal refinancing risk, as NQXT holds no debt maturities until 2030.

The terminal’s existing debt structure is conservative, with features that limit additional borrowing and control cash outflows, which helps ensure financial discipline.

Global Influence Of Fitch

As one of the leading global credit rating agencies, Fitch’s assessment carries considerable weight with investors, financial institutions, and policymakers worldwide.

While Fitch’s credit-neutral view suggests the acquisition will not immediately affect APSEZ’s rating, it underscores the strategic benefits of the move, which strengthens the company’s long-term growth prospects without jeopardising its financial health.

Located in the Port of Abbot Point, Queensland, Australia, the North Queensland Export Terminal is the most northern deepwater coal export terminal in the country.

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