Prices of dollar bonds issued by Adani Group companies sharply fell on Thursday after Gautam Adani was charged by US prosecutors for allegedly being part of an elaborate scheme to pay $265-million (about Rs 2,200 crore) bribe to Indian officials in exchange for favourable terms for solar power contracts.
Adani Ports and Special Economic Zone’s debt maturing in August 2027 fell more than 5% while Adani Electricity Mumbai’s debt maturing in February 2030 slumped around 8%.
Also ReadMarket cap of Adani Group firms slides by Rs 2.3 lakh crore after alleged bribery charges on Gautam Adani
The step-one dollar bond of Adani Transmission maturing in August 2026 fell around 4%, making it the biggest decline since February 2, 2023. The fall across entities was the biggest since February 2023 when US short-seller Hindenburg Research had published a negative report, questioning the group’s debt levels and the use of tax havens.
In the domestic secondary market (corporate bond), the news triggered some selloff, prompting investors to exit their positions in different Adani Group companies, said dealers. The recent news may lead to some temporary hiccups in the corporate bond market, making it a little volatile. According to market participants, companies may choose to wait for the conditions to stabilise before going for further borrowings.
Prices of several Adani bonds fell around 15-20 basis points.
“In the present scenario, investors did not place any bid, and will likely to exit. Till the time any positive news comes, yields on Adani bonds are likely to inch further, and investors may exit their positions,” said a dealer with a large brokerage firm. Amid charges, the company cancelled $600-million sale of US-dollar denominated bonds. Further, the plan to raise $2 billion overseas has been shelved.
Also ReadAdani Group scraps $600 million bond deal after alleged bribery and fraud charges
Gautam Adani has been indicted by US prosecutors for his alleged role in a $265-million scheme to bribe Indian officials, plunging his conglomerate deep into the crisis for the second time in two years. Multiple counts of fraud, which US authorities say involved a firm that was listed in New York and affected American investors – were levelled against Adani, who is one of the world’s richest people,
» Read More
