(Reuters) – Billionaire founder Gautam Adani was indicted by U.S. prosecutors on Friday after U.S. prosecutors issued an arrest warrant for him over an alleged $265 million bribery scheme. Adani Group bonds were under pressure for the second session.
The group sought to reassure investors that it was a “law-abiding organisation” and said the allegations were “baseless and denied”. That didn’t stop his companies from losing nearly $27 billion in market value on Thursday.
In early Asian trade on Friday, US dollar bonds of Adani companies were kept under pressure, paring heavy losses from a day earlier. Adani Ports and Special Economic Zone debt due 2027 traded at 92 cents to the dollar and around 80 cents on the long-term maturity.
The group’s India-listed shares are due to start trading at 0345 GMT on Friday.
U.S. prosecutors have charged eight people with agreeing to pay nearly $265 million in bribes to Indian government officials to secure contracts that could bring in $2 billion in profits over 20 years, as well as to India. The largest solar power plant project can be developed.
Gautam Adani, his nephew Sagar Adani and Ex Adani Green Energy (NS:) CEO Vineet Jain also raised more than $3 billion in loans and bonds by concealing corruption from lenders and investors, prosecutors said.
The Adani Group said on Thursday that the allegations leveled by the US Department of Justice and the US Securities and Exchange Commission in a parallel civil case are “baseless and denied” and that it will seek “every possible legal recourse”.
“The Adani Group has always maintained and remains steadfast in maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations.
“We assure our stakeholders, partners and employees that we are a law-abiding organization, fully complying with all laws.”
Kenya on Thursday canceled a procurement process worth about $2 billion that was expected to give control of the country’s main airport to the Adani Group.
The Adani Group is a significant corporate presence in its home market. Still Citigroup (NYSE: ) analysts estimated that Indian banks belonging to the group accounted for less than 1% of the total loans of most lenders.
