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Indian billionaire Gautam Adani's conglomerate is facing increasing financial strain following a US indictment accusing the group of a $265 million bribery scheme. Global banks are reportedly reconsidering their exposure to Adani entities, which could complicate the group's efforts to secure funding for its ambitious growth plans.
The indictment alleges that Adani and seven others paid bribes to secure contracts for India's largest solar power project, valued at $2 billion in profits over two decades. While Adani Group has denied the allegations, calling them "baseless," the controversy has triggered a sharp decline in the value of its stocks and bonds.
S&P Global has warned that Adani's access to equity and debt markets may shrink, which could hinder the conglomerate's renewable energy projects. Adani Green Energy, central to the allegations, has lost nearly $7 billion in value over two days.
The Securities and Exchange Board of India (SEBI) has begun investigating disclosures made by Adani entities. Meanwhile, international investors are expressing concerns over transparency in India's renewable energy sector, a key component of global climate goals.
The fallout from the indictment underscores the challenges facing the Adani Group as it attempts to navigate both legal scrutiny and financial uncertainty in the wake of the allegations.
