Adani Group’s Bonds Drop Following Bribery and Fraud Charges Against Gautam Adani in the US | Updates
Gautam Adani Indicted in the US: Adani Group’s Dollar Bond Prices Drop
Gautam Adani, the billionaire chairman of the Adani Group, has been indicted in New York on charges of bribery and fraud. Following the news, the dollar bond prices of Adani Group companies saw a significant drop during early Asian trading on Thursday, November 21. Bonds issued by Adani Port and Special Economic Zone, maturing in August 2027, fell by over five cents on the dollar, according to LSEG data. Bonds of Adani Electricity Mumbai, maturing in February 2030, dropped nearly eight cents, while those of Adani Transmission fell by more than five cents, trading slightly above 80 cents. These declines marked the sharpest drop since February 2023 when a report by short-seller Hindenburg Research raised concerns about the Adani group’s debt levels and use of tax havens.
Charges Against Gautam Adani in Bribery Scheme
US prosecutors have charged Gautam Adani with paying hundreds of millions of dollars in bribes and hiding the payments from investors. The indictment alleges that Adani, along with his nephew Sagar Adani, executives of Adani Green Energy Ltd, and Cyril Cabanes of Azure Power Global Ltd, engaged in a multi-billion-dollar conspiracy to raise funds from US investors and global financial institutions through false and misleading statements.
The SEC claimed the bribery scheme was aimed at helping Adani Green and Azure Power secure a multi-billion-dollar solar energy project from the Indian government. The charges include conspiracy to commit securities and wire fraud, with violations of federal securities laws. The SEC is seeking permanent injunctions, civil penalties, and officer and director bars against those involved.
Adani Green raised over $175 million from US investors, and Azure Power’s stock was traded on the New York Stock Exchange. The US Attorney’s office for the Eastern District of New York unsealed criminal charges against Gautam Adani, Sagar Adani, and others linked to Adani Green and Azure Power. The indictment also charges five individuals with conspiracy to violate the Foreign Corrupt Practices Act in connection with the bribery scheme. These charges accuse the group of bribing Indian officials to secure lucrative contracts and making false statements about bribery and corruption, as well as obstructing investigations.
