Adani Group Faces Financial Turmoil Amid Bribery Allegations

The Adani Group, an Indian conglomerate, may face a funding squeeze following an arrest warrant for its founder over a bribery scheme. Credit analysts and banks have expressed concerns about extending fresh credit. Concerns also arise about the impact on India's renewable energy sector and transparency demands.

The Adani Group, a major Indian conglomerate, is under financial scrutiny as credit analysts raise alarms over an arrest warrant issued in the U.S. for its billionaire founder, Gautam Adani. Alleged involvement in a $265 million bribery scheme has banks reconsidering extending new credit, despite ongoing loans remaining in place.

Bonds from Adani's entities experienced a sharp decline, the slide extending into its second day. Analysis by CreditSights highlights refinancing issues for the group's green energy projects, while S&P Ratings warns about limited access to equity and debt markets. The controversy could stunt investment in India's renewable sector.

Amid these allegations, Adani's attempts to reassure stakeholders have not pacified concerns. India's securities regulator SEBI is investigating disclosure adequacy by Adani entities, building on a previous probe into tax haven misuse. This turbulence coincides with Adani's failed business deals and stalled financial moves.

(With inputs from agencies.)