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Stocks And Bonds Of Adani Group Fell For A Second Consecutive Day After The U.S. Issued An Arrest Warrant For Its Founder, Gautam Adani. The Warrant Stems From A 265 Million dollars Bribery Scheme, Causing Significant Market Repercussions.

Impact On Adani Group’s Key Company, Adani Green Energy

At The Center Of This Controversy Is Adani Green Energy. The Company Saw An 8% Drop In Early Friday Trade And Has Already Lost $7 Billion In Market Value. Overall, The Adani Group’s Stocks Have Shed A Combined $33 Billion In Value Since News Of The Indictment Broke.

U.S. Prosecutors Charge Adani Group In Bribery Scheme

Gautam Adani, Along With Seven Others, Is Accused Of Paying Bribes To Indian Government Officials. These Actions Allegedly Secured Contracts That Would Yield $2 Billion In Profits Over The Next 20 Years. The Charges Include Involvement In Developing India’s Largest Solar Power Plant Project.

Group Denies Allegations And Plans Legal Action

Adani Group Strongly Denies These Allegations. It Has Called The Charges From U.S. Prosecutors And The U.S. Securities And Exchange Commission "baseless" And Vows To Pursue All Possible Legal Recourse.

Debt And Bond Market Reactions

Adani Ports And Special Economic Zone Debt Maturing In 2027 Traded At 91.5c On The Dollar, Reflecting A Significant Decline. Longer-term Maturities Are Also Seeing Decreased Prices, With Current Trading Near 80c.

Impact On Credit Ratings And Market Access

S&P Ratings Has Issued A Warning About The Group's Access To Credit Markets. With Its Large Growth Plans, The Adani Group May Now Face Challenges In Securing The Funding It Needs. This Could Lead To Adjustments In Credit Ratings For Key Subsidiaries Like Adani Ports And Adani Green Energy.

Global Projects Under Scrutiny

The Controversy Has Cast A Shadow Over Some Of The Group's International Deals. Kenya Has Already Cancelled A Nearly $2 Billion Procurement Process That Would Have Awarded The Adani Group Control Of The Country’s Main Airport. Additionally, A Public-private Partnership Deal Worth $736 Million To Build Power Transmission Lines Has Been Scrapped.

Impact On India’s Renewable Energy Sector

India’s Renewable Energy Sector, A Vital Part Of Global Climate Goals, May Face Slower Growth Due To This Scandal. Analysts Predict That Investors Will Demand More Transparency And Due Diligence Before Committing To Any Future Projects.

Adani Green Cancels U.S. Bond Sale

In Response To The Ongoing Legal Challenges, Adani Green Energy Has Also Cancelled A $600 Million U.S. Bond Sale, Further Reflecting The Impact Of These Legal Issues On The Group’s Financial Plans.

Alleged Misleading Public Statements

U.S. Prosecutors Claim That Adani And His Associates Misled Both The Public And U.S. Investors About The Ongoing Investigation Into Their Activities. The Group’s Actions May Have Influenced Investor Trust And Market Stability, Particularly In The Renewable Energy Sector.

The Future Of Adani Group Amid Legal And Market Challenges

Despite Being A Major Corporate Presence In India, Adani Group Is Facing Significant Challenges. Citigroup Analysts Estimate The Exposure Of Indian Banks To The Group Is Less Than 1% Of Their Total Loans, Limiting Direct Financial Risk. However, The Long-term Impact On Market Confidence And International Investments Remains To Be Seen.

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