The Adani Group has abruptly cancelled a $600 million bond offering following a dramatic US Department of Justice (DOJ) indictment alleging a sophisticated $250 million bribery scheme involving top executives, sending shockwaves through international financial markets.
Adani Group scraps $600 million bond amid US bribery charges
The sudden cancellation came mere hours after the bond was initially priced, with the Adani group citing ongoing legal developments. US prosecutors have accused key Adani executives, including Sagar Adani and Vneet Jaain, of misleading investors and orchestrating bribes to secure lucrative solar energy contracts.
The allegations have triggered immediate market repercussions. Adani’s US dollar bonds experienced sharp declines in Asian trading, with some securities plummeting up to 15 cents. Existing Adani Green Energy bonds, issued in March 2024, have sunk to record lows, trading at 80 cents on the dollar.
Experts stance on Adani controversy:
“While Adani weathered the Hindenburg allegations, these charges highlight ongoing governance and regulatory risks,” commented Mohit Mirpuri, a fund manager at Singapore-based SGMC Capital.
Here’s what Adani Green said on allegations:
In an official statement, Adani Green acknowledged the legal challenges: “The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint… against our Board members, Gautam Adani and Sagar Adani.”
The indictment represents another significant blow to the Adani Group, following the devastating Hindenburg Research report in 2023 that erased $150 billion in market value by accusing the conglomerate of stock manipulation and fraud.
Are Adani Group stocks in trouble amid US bribery charges?
Market reactions were swift and severe. Adani Group shares crashed up to 20%, with Adani Green experiencing an 18% decline on the Bombay Stock Exchange.
The cancellation of the bond offering underscores the profound impact of the US legal actions, potentially hampering the group’s fundraising capabilities and international financial credibility.
As the legal proceedings unfold, investors and market analysts remain watchful, anticipating further developments in this complex and high-stakes corporate saga.
The Adani Group now faces the challenging task of navigating these serious allegations while maintaining investor confidence and operational stability.
