Adani bonds slide to year-low

Investors reduced their exposure to the Indian company, causing Adani dollar bond prices to drop to nearly one-year lows on Monday in response to US authorities' accusations of bribery and fraud.

Gautam Adani, the group's billionaire chairman, and seven other people were accused last week of conspiring to bribe Indian government officials with approximately $265 million.

In addition to developing India's largest solar power facility, the accusations involved claimed bribes made to secure contracts that might generate $2 billion in profit over 20 years.

The charges also included making misleading statements to the public despite being made aware of the US investigation in 2023, reports Reuters.

The Adani Group has said the accusations as well as those levelled by the US 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 fell between 1 cent and 2 cents, with similar selling in Adani Transmission debt.

Ports bonds maturing in 2027 were down 1.6 cents to 88.98 cents on the dollar, having lost nearly 7 cents in face value since US prosecutors charged billionaire Chairman Gautam Adani last week.

Longer-dated Ports bonds were down on Monday and have lost between 8 cents and 10 cents in face value on the news.

Adani Transmission debt maturing in May 2036 fell 1.8 cents on Monday for a loss of more than 7 cents since Wednesday.