Adani Green calls off US-bond fund raising after bribery allegations

Adani Green Energy on Thursday announced it has decided not to proceed with the proposed USD-denominated bond offering, hours after US prosecutors charged Gautam Adani, his nephew and six others over allegations of bribery.

 

The company was looking to raise an estimated $600 million.

 

This is the second time the conglomerate had to call-off a fundraising due to governance related developments. In February 2023, Adani Enterprises withdrew a Rs 20,000 crore follow-on public offer, post the release of a report from US-based Hindenburg Research which alleged financial irregularities, which the group has so far denied.  Also Read: Gautam Adani charged by US in $265 million bribery case: Top things we know 

 

Earlier this week, Adani Green announced three of its subsidiaries as issuers have appointed DBS Bank Ltd., Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, ING Bank NV, Singapore Branch, Intesa Sanpaolo S.p.A., London Branch, Mizuho Securities (Singapore) Pte. Ltd., MUFG Securities EMEA plc., SMBC Nikko Securities (Hong Kong) Limited and State Bank of India, London Branch as joint book runners to arrange a series of fixed income investor calls commencing on November 18. The USD-denominated Rule 144A / Regulation S senior secured notes were to be offered with a 20-year door-to-door tenor and ~13.09 years.

 

Gautam Adani has been charged by the United States in an alleged bribery and fraud scheme amounting to $265 million. US prosecutors alleged that Adani, his nephew Sagar Adani, and six other defendants paid bribes to Indian government officials to secure solar energy supply contracts yielding $2 billion in profits over 20 years.