Adani Group scraps $600 million bond, other notes drop on US SEC charges

Billionaire Adani, one of the richest men in the world, was charged with allegedly participating in a scheme that involved promising to pay more than $250 million in bribes to Indian govt officials

By Harry Suhartono, Ameya Karve and Abhishek Vishnoi

 

Units of Adani Group scrapped a $600 million dollar bond on Thursday after US prosecutors charged Gautam Adani, the group founder with participating in an alleged bribe plot. The group’s existing US-currency notes plunged in Asian trading.  

 

The Indian conglomerate decided not to proceed with the offering in view of recent press releases from Department of Justice and the Securities and Exchange Commission, according to a person familiar with the matter who asked not to be identified.

 

Billionaire Adani, one of the richest men in the world, was charged with allegedly participating in a scheme that involved promising to pay more than $250 million in bribes to Indian government officials to secure solar energy contracts. Hours before, units of the billionaire’s conglomerate had priced a bond offering that it later told investors it would scrap.      

 

“While Adani has shown resilience in weathering past allegations, including those from Hindenburg, this development underscores the persistent risks associated with emerging markets, particularly around governance, transparency, and regulatory scrutiny,” said Mohit Mirpuri, a fund manager at Singapore-based SGMC Capital Pte.

 

Adani Green Energy UP dollar notes sold in March declined by 15 cents, a record, according to data compiled by Bloomberg. Other notes from group companies dropped the most since a short-seller report in 2023 by Hindenburg Research sparked a more than $150 billion rout in Adani Group stocks.

 

Adani Electricity Mumbai dollar notes due in February 2030 dropped by 8.2 cents, the most since a short-seller report in 2023 by Hindenburg Research allegations.