American authorities accused Gautam Adani of being engaged in a $250 million bribery scheme to secure solar power contracts, highlighting the difficulties in finding buyers for renewable energy in India
The US bribery allegations have been looming over Gautam Adani and his conglomerate since the accusations of corruption surfaced. Some allies including Japan, Abu Dhabi, and Middle East are still backing the Indian billionaire, while other heavy hitters are either reviewing their deals or cancelling them with Adani.
American authorities accused Adani of being engaged in a $250 million bribery scheme to secure solar power contracts, highlighting the difficulties in finding buyers for renewable energy in India. However, the Adani Group has denied the charges. Since then, the group has faced increased scruitny in terms of business and investment.
Despite the ongoing allegations, several key global players continue to support Adani. Florida-based investment firm GQG Partners has reaffirmed its $9.7 billion stake in Adani companies on strong fundamental and investment strategy grounds.
In addition, Israel has also shown continued support to Adani Group. Israel Ambassador Reuven Azar encouraged further investments in the company, saying "no concerns" from their perspective. Abu Dhabi's International Holding Company (IHC) has also reiterated its confidence in Adani, particularly in green energy and sustainability sectors.
Japan’s major banks, including Mizuho Financial Group, Sumitomo Mitsui Financial Group, and Mitsubishi UFJ Financial Group, have remained confident in Adani’s cash-generating assets and repayment capacity. Meanwhile, Emirates NBD Bank in the Middle East continues its commitments and is even considering new lending opportunities for Adani projects.
Sri Lanka, Bangladesh, and Kenya are reassessing their dealings with the Adani Group post bribery allegations. Kenya has recently called off two major power deals, including a $736 million agreement for constructing power transmission lines and a $2 billion project to upgrade Jomo Kenyatta International Airport.
Bangladesh has also started reviewing the Adani Godda coal-fired plant agreement. On the other hand, Barclays and Jefferies had already reduced or hold their exposure with Adani after Hindenburg issue.
Reuters reported that banks like SBI and ICICI Bank are reassessing future commitments, but continuing funding for near-completion projects.