Green arms scrap $600 million bond offer

MUMBAI: A host of subsidiaries of

Adani Green Energy

that were on course to raise $600 million through foreign bonds withdrew the offer on Thursday after the US Department of Justice indicted group chairman Gautam Adani and six related entities of alleged

bribery charges

. The bond offering had opened on Wednesday and was subscribed about three times the amount being raised, Adani group sources told TOI.
The company informed exchanges that after the US DOJ issued a criminal indictment and brought a civil complaint against some of its board members, its subsidiaries decided “not to proceed with the proposed dollar denominated bond offerings”.
This was the second scrapping of a bond offering by Adani Green in as many months. In Oct, the company had intimated exchanges about a bond offering but didn’t proceed with it citing unfavourable market conditions due to the US presidential election on Nov 5.
After the DOJ indictment, global ratings major Moody’s Ratings said that the development was a

credit negative

for the group. “The indictment of Adani Group’s chairman and other senior officials on bribery charges is credit negative for the group’s companies,” Moody’s said.
After the charges were made public early on Thursday, bonds of the group’s companies slid, media reports said.