Adani Group Bonds Hit For 2nd Consecutive Day After US Indictment Over Alleged Bribery Scheme

Adani Group bonds faced pressure for the second consecutive session on Friday, 22 November 2024, following the indictment of group Chairman Gautam Adani by US prosecutors over an alleged $265 million bribery scheme, according to a Reuters report.

For example, Adani Ports and Special Economic Zone bonds maturing in 2027 were trading at 92 cents on the dollar, while longer-dated maturities were at around 80 cents.

This came despite the group's efforts to reassure investors, asserting that it was a "law-abiding organisation" and dismissing the accusations as "baseless and denied," adding that it would pursue "all possible legal recourse."

"The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations," the group said.

"We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws."

Nevertheless, the companies saw a loss of around $27 billion in market value on Thursday.

US prosecutors have so far charged eight individuals with conspiring to pay approximately $265 million in bribes to Indian government officials in exchange for contracts expected to generate $2 billion in profit over 20 years and to develop India's largest solar power plant project.

The prosecutors further alleged that Gautam Adani, his nephew Sagar Adani, and former Adani Green Energy CEO Vneet Jaain raised over $3 billion in loans and bonds by concealing corruption from lenders and investors.

This also led to Kenya cancelling a nearly $2 billion deal that would have granted the Adani Group control of the country's main airport.