Adani Group's Financial Turmoil Deepens Amidst Bribery Allegations
Adani Group, led by billionaire Gautam Adani, faces increased scrutiny as U.S. bribery allegations lead to credit downgrades. The allegations involve a $265 million scheme linked to Indian power projects, affecting the group's funding access and relations with partners like TotalEnergies and GQG Partners.
Adani Group's ongoing financial woes intensified Tuesday as additional credit rating agencies downgraded their outlook for the conglomerate. The development follows U.S. authorities charging its billionaire founder, Gautam Adani, in connection with a $265 million bribery scheme that has led to far-reaching consequences.
The scandal, linked to solar power contracts in India's Andhra Pradesh, has prompted the state to consider suspending an agreement with the group. Meanwhile, Moody's downgraded Adani's seven entities, while Fitch put some bonds under watch. The indictments risk increasing the group's capital costs by limiting access to funding sources.
As backlash spreads across the Adani empire, TotalEnergies halted investments, and Adani responded by discussing unaffected growth plans. Australian investor GQG Partners noted that they don't foresee a significant impact, despite the group's reliance on foreign capital facing challenges due to the allegations and potential governmental actions.
(With inputs from agencies.)
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