Adani Group&rsquo;s dollar bonds plunged to their lowest in nearly a year on Monday, as investors reacted to U.S. bribery and fraud charges against the Indian conglomerate.
Chairman Gautam Adani and seven others were accused last week of paying $265 million in bribes to Indian officials to secure contracts worth $2 billion in profits over 20 years. The charges, which also include making misleading public statements despite knowledge of a U.S. probe, have rattled markets already wary of the group.
Adani has denied the allegations, calling them "baseless," and vowed to pursue legal action. The accusations, however, come as the company is still recovering from earlier damage caused by the Hindenburg report, which alleged financial misconduct.
On Monday, bonds from Adani Ports and Special Economic Zone maturing in 2027 fell 1.6 cents to 88.98 cents on the dollar, a 7-cent drop since the charges were announced. Longer-term Ports bonds lost up to 10 cents, while Adani Transmission&rsquo;s 2036 bonds fell 1.8 cents, bringing losses for the debt to over 7 cents in just days.
The shockwaves extended to equities, with Adani's 10 listed companies shedding nearly $28 billion in market value in two trading sessions. Flagship Adani Enterprises led the losses.
The charges also focus on alleged bribes tied to India&rsquo;s largest solar power project. Adani Group has dismissed them as politically motivated but faces mounting investor scepticism.
The developments raise fresh questions about governance and financial stability at Adani. Analysts warn the fallout could increase borrowing costs for the group and Indian corporates overall, deepening concerns as global markets watch closely for the next moves in this high-stakes saga.

Adani  ports and special economic zone bond market

Investors dump Adani debt amid fraud allegations

Adani Bonds Slide to One-Year Low After U.S. Charges

Investors dump Adani debt amid fraud allegations

November 25, 2024 | 10:35 IST