Downfall Drama: Adani Bonds in the Eye of a Storm

Adani companies' dollar bond prices plummeted in Asia after their chairman's indictment in New York over bribery and fraud allegations. Bonds for Adani Port, Adani Electricity Mumbai, and Adani Transmission saw significant declines. This marks the largest drop since a negative report by Hindenburg Research in February 2023.

Prices of dollar bonds linked to Adani companies saw a sharp decline in early Asian trading on Thursday. The drop followed the indictment of the Indian conglomerate's chairman in New York, amid bribery and fraud allegations.

Debt for Adani Port and Special Economic Zone, maturing in August 2027, experienced a fall exceeding five cents, while Adani Electricity Mumbai's debt maturing in February 2030 fell by nearly eight cents. Bonds issued by Adani Transmission also dipped, now trading just above 80 cents, according to LSEG data.

These price declines represent the largest since February 2023 when Hindenburg Research released a critical report on the group's debt levels and tax haven usage. U.S. authorities announced on Wednesday that Adani Group Chairman Gautam Adani and seven other individuals allegedly agreed to a $265 million bribery scheme involving Indian government officials.

(With inputs from agencies.)