Adani Group Bonds Fall Amid US Charges Against Gautam Adani
Dollar bond prices of Adani Group companies dropped significantly on Thursday, November 21. The fall followed the indictment of Gautam Adani, the group’s billionaire chairman, in New York. He faces charges of bribery and fraud, as reported by Reuters.
Debt from Adani Port and Special Economic Zone, set to mature in August 2027, declined by over five cents on the dollar. Bonds of Adani Electricity Mumbai, maturing in February 2030, fell nearly eight cents. Adani Transmission bonds dropped by over five cents, trading slightly above 80 cents, according to LSEG data.
These declines are the steepest since February 2023, following Hindenburg Research’s report, which raised concerns over Adani Group’s debt and tax haven usage.
Bribery and Fraud Allegations
US prosecutors accused Gautam Adani of paying over $250 million in bribes to Indian government officials. They also alleged he misled investors and banks to secure billions of dollars. Lisa Miller, deputy assistant attorney general, stated the indictment involved schemes to deceive and obstruct justice.
Charges were filed against Gautam Adani, his nephew Sagar Adani, executives from Adani Green Energy, and Cyril Cabanes from Azure Power Global. The allegations include securities and wire fraud conspiracy and violating federal securities laws.
Focus on Solar Projects
The US SEC claimed the bribery scheme aimed to secure a multi-billion-dollar solar project awarded by the Indian government. Adani Green raised over $175 million from US investors during the alleged scheme. Azure Power’s stock, traded on the NYSE, was also implicated.
Criminal Charges Filed
The US attorney’s office in New York unveiled criminal charges against Gautam Adani, Sagar Adani, and others involved. The federal indictment accused them of conspiracy under the Foreign Corrupt Practices Act. Allegations include bribing officials, securing contracts through corruption, and obstructing investigations, according to FBI assistant director James Dennehy.
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