Adani bonds hit one-year low as investors weigh US bribery allegations
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 US authorities.
Notably, bonds issued by Adani Ports and Special Economic Zone, among the group's most actively traded debts, saw declines of 1 to 2 cents during early Asian trading. Similar downward trends were observed in bonds from Adani Transmission.
Adani Ports bonds maturing in 2027 fell by 1.6 cents to 88.98 cents on the dollar, marking a significant loss of nearly 7 cents in face value since US prosecutors charged Gautam Adani, the billionaire chairman of the group, last week. Longer-term bonds from Adani Ports also dropped on Monday, with their face value decreasing by 8 to 10 cents since the allegations emerged.
Meanwhile, Adani Transmission bonds maturing in May 2036 fell by 1.8 cents, resulting in an overall loss of more than 7 cents since mid-last week.
The Adani Group has strongly denied the allegations, calling them unfounded. It also criticized the parallel civil case filed by the US Securities and Exchange Commission, vowing to pursue 'all possible legal remedies' to counter the claims.
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