Adani bonds fall to year’s low as investors weigh bribery allegations

ADANI dollar bond prices fell to an almost one-year low on Monday as investors reduced their exposure to the Indian conglomerate following allegations of bribery and fraud by US officials.

Gautam Adani, the group’s billionaire chairman, and seven others were charged last week with agreeing to pay nearly US$265 million in bribes to Indian government officials.

The charges relate to alleged payments for the development of India’s largest solar power project and for obtaining contracts that could yield profits of US$2 billion over 20 years.

The accusations included making misleading statements to the public, despite being aware of the US investigation in 2023.

Adani Group said the accusations, as well as those leveled by the U.S. Securities and Exchange Commission in a parallel civil case, were baseless and that it would “pursue every legal remedy possible.”

In Asian trading on Monday, some of the most liquid debt issued by Adani Ports and Special Economic Zone fell between 1 and 2 cents, while similar selloffs were seen in Adani Transmission debt.

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Port bonds due in 2027 fell 1.6 cents to 88.98 cents on the dollar, having lost about 7 cents in face value since U.S. prosecutors indicted billionaire President Gautam Adani last week.

Long-term Port bonds fell on Monday, losing between 8 and 10 cents in par value following the news.

Adani Transmission debt maturing in May 2036 fell 1.8 cents on Monday, having lost more than 7 cents since Wednesday.

The 10 listed shares of Adani Group, led by Adani Enterprises, lost US$27.9 billion in market value in two sessions last week following the US accusations. REUTERS