Adani Green issues statement on bribery charges, abandons $600 million bond deal

The Adani Group has cancelled its USD 600 million bond offering after US prosecutors accused Gautam Adani and other executives of orchestrating a USD 250 million bribery scheme.
The charges, filed by the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), caused Adani’s US dollar bonds to drop sharply in Asian trading, with some securities falling as much as 15 cents.
The group abandoned the bond sale just hours after it had been priced, citing legal developments. The indictment alleges that Adani executives bribed Indian officials to secure high-value solar energy contracts.
Key individuals named in the indictment include Sagar Adani and Vneet Jaain, accused of misleading investors while raising funds from US markets.
“While Adani weathered the Hindenburg allegations, these charges highlight ongoing governance and regulatory risks,” said Mohit Mirpuri, a fund manager at Singapore-based SGMC Capital, in remarks to Bloomberg.
The indictment adds to the group’s challenges following a tumultuous period since 2023, when the Hindenburg Research report accused Adani of stock manipulation and fraud, erasing $150 billion in market value.
Existing Adani Green Energy bonds issued in March 2024 sank to record lows, trading at 80 cents on the dollar, signaling investor unease. Other group securities mirrored these declines, compounding concerns over governance and financial stability.
The Adani Group has strongly denied allegations of bribery and securities fraud levelled by US prosecutors against its chairman, Gautam Adani, and other key executives.
The group dismissed the charges as “baseless” and maintained that it operates with the highest standards of integrity and compliance. It further stated its intent to explore all possible legal remedies to address the accusations.
“As stated by the US Department of Justice itself, “the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,” the Adani Group spokesperson said.
In an official statement, Adani Green said: “The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani.”
“The United States Department of Justice have also included our Board member, Vneet Jaain, in such criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings,” the statement added.
Following the charges, shares of Adani Group have crashed by up to 20%, with Adani Green down 18% on the Bombay Stock Exchange (BSE).