Adani Green Scraps $600M Bond Plans

Adani Green Energy Ltd. has cancelled plans on Thursday to raise $600 million in US dollar-denominated bonds. The bond had been priced but was pulled after US prosecutors charged Gautam Adani in an alleged $250 million bribery scheme.

“In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings,” the company said in a filing.

US prosecutors in New York indicted Adani Group Chairman Gautam Adani, his nephew Sagar Adani, and other executives for allegedly offering $265 million in bribes to Indian government officials for securing “lucrative solar energy supply contracts” with state electricity distribution companies.

“In or about and between 2020 and 2024, Senior executives of an Indian renewable-energy company, which was a portfolio company of an Indian conglomerate, an issuer company that operated in the renewable-energy sector whose securities were traded on the US exchange and that issuer’s largest shareholder, a Canadian institutional investor, participated in a scheme to bribe Indian government officials to ensure execution of lucrative solar energy supply contracts with Indian Government entities,” the US District Court said in its order.

The allegations also include attempts to obstruct justice by deleting electronic evidence and misleading the Justice Department, Securities and Exchange Commission (SEC), and FBI. In addition to the criminal charges, the SEC has filed a separate civil lawsuit.

Shares of all Adani Group companies are trading with losses between 10% and 20% during Thursday’s trading session.

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The Adani Green Energy stock fell as much as 19% today. Currently, the stock is trading 18.07% lower at Rs 1,157.40 apiece on NSE. On a year-to-date basis, the stock has declined about 28%.