The $600 million bond offering by the Adani Group was called off when US prosecutors alleged that Gautam Adani and other executives were involved in a $250 million bribery scheme.
The allegations from the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) led to a significant decline in Adani’s US dollar bonds during Asian trading, resulting in a drop of up to 15 cents for some securities.
The group decided to cancel the bond sale shortly after it was priced, citing legal changes. The accusation claims that Adani executives paid off Indian officials in order to obtain lucrative solar energy agreements.
Sagar Adani and Vneet Jaain are among the main people accused in the indictment for deceiving investors during the fundraising from US markets.
“While Adani weathered the Hindenburg allegations, these charges highlight ongoing governance and regulatory risks,” said Mohit Mirpuri, a fund manager at Singapore-based SGMC Capital, in remarks to Bloomberg.
Also read: USA indicts Adani on corruption charges in clinching solar energy projects
The charges contribute to the group’s difficulties after a turbulent time since 2023, when the Hindenburg Research report alleged Adani of stock manipulation and fraud, resulting in $150 billion loss in market value.
Adani Green Energy bonds issued in March 2024 dropped to historic lows, selling at 80 cents on the dollar, indicating investor concern. Other securities in different groups experienced similar drops, adding to worries about governance and financial stability.
In an official statement, Adani Green said: “The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani.”
