” Adani Group bonds plummet on US probe ” | GNN INFO

Most dollar bonds of Adani Group companies fell to their lowest level in two months on Monday following a report indicating that US prosecutors have widened their investigation of the conglomerate to examine potential bribery.

Shares of all 10 groups and related companies also fell over 5% in early trading in India, with Adani Total Gas leading the decline.

Bond prices fell, resulting in a 38 basis points (bps) increase in the yield on a note from Adani Ports and Special Economic Zone due in February 2032 to 7.20%. The yield had jumped 54 bps to 7.36% earlier in the day, marking the biggest single-session gain since February.

The daily decline on most actively traded dollar bonds was the largest in six to 12 months.

US investigators are probing whether an Adani entity, or individuals associated with the company, including Gautam Adani, were involved in paying officials in India for favourable treatment on an energy project, Bloomberg reported on Friday. The group did not immediately respond to Reuters’ request for comment.

Published in The Express Tribune, March 19^th, 2024.

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