Bribery Charges Impact on Adani Group

• The U.S. Department of Justice has charged two officials of Adani Green Energy Ltd. (AGEL) with bribery schemes allegedly committed by Gautam Adani, chairman of the Adani Group.

• The charges are alleged to have resulted in a loss of $55 billion in market value for the group’s listed companies.

• The allegations could make it harder for the Adani Group to raise funds from overseas investors, requiring the company to rely more on domestic investors.

• Local lenders, including Indian banks, may review their exposure to the group.

• Fitch Ratings, Moody’s, and S&P Global have taken negative rating actions on Adani firms, citing governance risks.

• The DOJ alleges that AGEL promoter and senior officials paid bribes worth $265 million to officials in various Indian states for the sale of renewable energy produced by AGEL.

• Allegations could lead to higher cost of capital for the Group and affect its profitability.

• The charges against AGEL have raised doubts about the Centre’s policy goal of boosting the nation’s renewable energy capacity to 500 gigawatts by 2030.