Adani Group Bonds Slide for Second Day Amid US Bribery Indictment

Adani Group bonds faced continued pressure for a second consecutive session on Friday, November 22, 2024, following the indictment of Chairman Gautam Adani by US prosecutors in connection with an alleged $265 million bribery scheme, as reported by Reuters.

Adani Ports and Special Economic Zone bonds maturing in 2027 traded at 92 cents on the dollar, with longer-dated bonds dropping to around 80 cents.

Despite the turmoil, the group sought to reassure stakeholders, stating it is a “law-abiding organization” and dismissing the allegations as “baseless.” The company emphasized its commitment to “the highest standards of governance, transparency, and regulatory compliance,” vowing to pursue “all possible legal recourse.”

However, investor confidence faltered, leading to a loss of approximately $27 billion in market value on Thursday alone.

The US prosecutors alleged that $265 million in bribes had been paid to Indian government officials to secure contracts worth $2 billion in profits over two decades, including the development of India’s largest solar power plant. Additionally, they accused Gautam Adani, his nephew Sagar Adani, and former Adani Green Energy CEO Vneet Jaain of concealing corruption to secure over $3 billion in loans and bonds.

The fallout has already impacted the group’s global ventures, with Kenya canceling a nearly $2 billion deal that would have handed control of its main airport to the Adani Group.