Adani Green Energy cancels $600-mn bond issue amid US bribery charges against Gautam Adani, others

Gautam Adani

Adani Green Energy Ltd said on November 21 that it has decided to halt its proposed $600-million dollar-denominated bond issuance amid the recent bribery charges filed by the US federal prosecutors against key Adani Group executives, including founder Gautam Adani. The company announced its decision to scrap the bond issue in a regulatory filing, citing the indictment as the reason for its subsidiaries’ plans to defer the bond offering.

The United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have brought criminal and civil cases, respectively, against Gautam Adani, Sagar Adani, and Vneet S Jaain for their alleged roles in a $250-million bribery scheme to secure solar energy contracts in India. The accusations, which also include obstruction of justice, have led to a significant decline in Adani Group stocks and bonds.

Meanwhile, Moody’s termed the bribery charges against Gautam Adani and other senior Adani Group officials as ‘credit negative’. The ratings agency cited concerns over the group’s governance practices and access to capital to meet liquidity requirements.

The cancellation of the bond issue comes as the Adani Group has been taking significant steps to manage its debt amid scrutiny. Earlier this year, the conglomerate prepaid Rs 7,374 crore in share-backed financing to address leverage concerns.

It has also undertaken a series of fundraising efforts, including a $1-billion qualified institutional placement (QIP) by Adani Energy Solutions in August and a $500-million share sale by Adani Enterprises in October, aimed at reducing debt and investing in growth projects. The ports-to-power conglomerate had also planned to raise $1.5 billion through dollar bond issuances by early 2025 for debt refinancing, primarily under Adani Green Energy and Adani Energy Solutions.