Factbox: Major fallout for India's Adani Group after U.S. bribery indictment

Adani Total Gas

27/11/2024 13:40

(Adds details on ratings agency cuts, Andhra Pradesh plans in
paragraphs 4-6)
       Nov 27 (Reuters) - Some nations and investors have
either scrapped deals or halted investments in the Adani Group,
after the United States indicted its billionaire chairman Gautam
Adani for alleged bribery and fraud to win contracts for a group
company, Adani Green Energy.
    Adani Group has denied all the accusations as "baseless",
but its 10 listed entities have lost about $33 billion in market
value since the indictment, with Adani Green the hardest hit,
losing about $9.7 billion in market value.
    Here are key details of the conglomerate's stalled deals and
other fallout:
    
    ** Ratings agency Moody's cut the outlook on the ratings of
seven Adani entities to 'negative' from 'stable,' citing the
U.S. indictment of Chairman Gautam Adani and others could weaken
the group's access to funding and increase its capital costs.
        Meanwhile, Fitch earlier put some Adani Group bonds on
watch for a possible downgrade, also citing the U.S. indictment.
  
        
  
        ** India's Andhra Pradesh state is 
    likely to suspend
     a power purchase deal linked to Adani Group due to the U.S.
indictment, two state government sources told Reuters. The
southern state will also ask the federal government and the
Solar Energy Corporation of India (SECI), which awards power
supply contracts to companies like Adani, to investigate the
charges.
  
    
    ** French oil major TotalEnergies  TTEF.PA  will not make
any more investments in the Adani Group. Total has a 20% stake
in Adani Green Energy  ADNA.NS , putting its financial exposure
in Adani firms at between $4 billion and $5 billion, Bernstein
Research estimates. 
    
    ** The U.S. International Development Finance Corp is
reviewing the impact of the indictment against Gautam Adani on
the agency's plan to lend $550 million for a port development
project in Sri Lanka partly owned by Adani Group. Last November,
the agency said it would provide financing for the port terminal
project in the key city of Colombo. 
    
    ** Sri Lanka is studying the accusations against Adani Group
and will consider all aspects of its projects in the island
nation. The government is taking the concerns seriously but has
made no final decision yet.
    
    ** Kenya has canceled a procurement process of more than $2
billion that was expected to give control of its main airport to
the Adani Group. The deal was to add a second runway at the Jomo
Kenyatta international airport and upgrade the passenger
terminal. Kenya also scrapped a separate 30-year, $736-million
public-private partnership, signed by Adani Energy Solutions
 ADAI.NS  with its energy ministry in October.
    
    ** Bangladesh has set up a committee to investigate its
power generation contracts signed during the tenure of former
prime minister Sheikh Hasina, one of them with Adani Power
 ADAN.NS . 

 (Reporting by Kashish Tandon in Bengaluru and Aditi Shah in New
Delhi; Editing by Clarence Fernandez and Louise Heavens)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))