Adani Group Abandons Abandons $600 Million Bond Deal After Facing Bribery Charges

Mumbai: After US prosecutors accused Gautam Adani and other executives of the Adani Group of orchestrating a $250 million bribery scheme, the conglomerate cancelled its $600 million bond offering.

The charges were filed by the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). It caused Adani’s US dollar bonds to drop sharply in Asian trading. Some securities were falling as much as 15 cents on Thursday.

The group abandoned the bond sale just hours after it had been priced. It cited legal developments as the reason behind such a move. It has been alleged that Adani executives bribed Indian officials to secure high-value solar energy contracts.

Key persons named in the indictment include Sagar Adani and Vneet Jaain. They have been accused of misleading investors while raising funds from US markets, reported the India Today.

“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, told Bloomberg.

The indictment adds to the group’s challenges since 2023, when the Hindenburg Research report accused Adani of stock manipulation and fraud. Existing Adani Green Energy bonds issued in March 2024 sank to record lows, trading at 80 cents on the dollar.

Such developments hint at investor unease.