Adani Group scraps $600 million bond issue after US charges Gautam Adani in bribery case
Adani Group Cancels $600 Million Bond Offering: The Adani Group has scrapped its $600 million bond issuance following charges filed by U.S. prosecutors against its founder, Gautam Adani, related to a bribery scheme. The U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) allege that Adani and other executives orchestrated over $250 million in bribes to Indian officials to secure lucrative solar energy contracts.
Market Impact: The announcement led to a significant decline in the value of existing Adani bonds, which dropped to record lows, with some trading as low as 80 cents on the dollar. Shares of various Adani Group companies fell sharply, with declines of up to 20% observed in early trading.
Legal Context: The indictment includes charges of securities fraud and conspiracy, asserting that the accused misled investors while raising funds from U.S. markets. Key figures named alongside Gautam Adani include his nephew, Sagar Adani, and former CEO Vneet Jaain.
Previous Challenges: This incident adds to the ongoing challenges faced by the Adani Group, particularly following last year’s Hindenburg Research report, which accused the conglomerate of stock manipulation and fraud, resulting in a loss of approximately $150 billion in market value.
