Adani bonds slide to year low as investors weigh bribery allegations (updated)

Azure Power Global

25/11/2024 03:10

(Adds detail and context in paragraphs 2-4)
    By Tom Westbrook and Scott Murdoch
       SINGAPORE/SYDNEY, Nov 25 (Reuters) - Adani dollar bond
prices fell to almost one-year lows on Monday as investors cut
their exposure to the Indian conglomerate in the wake of bribery
and fraud allegations from U.S. authorities.
    The group's billionaire chairman, Gautam Adani, and seven
other people were last week charged with agreeing to pay around
$265 million in bribes to Indian government officials.
    The charges related to alleged payments to obtain contracts
that could yield $2 billion of profit over 20 years as well as
to develop India's largest solar power project.
    The charges also included making misleading statements to
the public despite being made aware of the U.S. investigation in
2023.
    The Adani Group has said the accusations as well as those
levelled by the U.S. Securities and Exchange Commission in a
parallel civil case are baseless and that it will seek "all
possible legal recourse".    
    In Asian trade on Monday, some of the most liquid debts,
issued by Adani Ports and Special Economic Zone  APSE.NS  fell
between 1 cent and 2 cents, with similar selling in Adani
Transmission debt.
    Ports bonds maturing in 2027  USY00130VS35=TE  were down 1.6
cent to 88.98 cents on the dollar, having lost nearly 7 cents in
face value since U.S. prosecutors charged billionaire Chairman
Gautam Adani last week.
    Longer-dated Ports bonds  USY00130YV37=TE   US00652MAJ18=TE 
were down on Monday and have lost between 8 cents and 10 cents
in face value on the news.
    Adani Transmission  US00652XAB47=TE  debt maturing in May
2036 fell 1.8 cent on Monday for a loss of more than 7 cents
since Wednesday.
    Adani group's 10 listed stocks led by Adani Enterprises
 ADEL.NS  lost $27.9 billion in market value over two sessions
last week after the U.S. charges.

 (Reporting by Tom Westbrook in Singapore and Scott Murdoch in
Sydney; Editing by Jacqueline Wong)
 ((Scott.Murdoch@thomsonreuters.com;))