Even as U.S. bribery allegations loom over Gautam Adani, his business empire finds support from some heavy hitters while others are reportedly reviewking their ties. The divide underscores a high-stakes battle over reputational risk and financial opportunity.
Backing Adani
GQG Partners
The Florida-based investment firm reaffirms its $9.7 billion stake in Adani companies, citing strong fundamentals and no change in its investment strategy.
Israel
Despite the allegations, Israel remains supportive, with Ambassador Reuven Azar encouraging further Adani investments, noting no concerns from their perspective.
Abu Dhabi’s IHC
Abu Dhabi’s International Holding Company has reiterated its confidence in Adani, particularly in green energy and sustainability sectors.
Japan’s big banks
Mizuho Financial Group, Sumitomo Mitsui Financial Group, and Mitsubishi UFJ Financial Group have all stood firm, with no plans to scale back their relationship. Confident in Adani’s cash-generating assets and repayment capacity, these banks view India as a crucial growth market.
Middle East Players
Emirates NBD Bank is equally undeterred, continuing commitments and considering fresh lending for Adani projects.
Reassessing ties
Few Indian lenders
Major banks like SBI and ICICI Bank, according to a Reuters report, are taking a cautious approach, continuing funding for near-completion projects but reassessing future commitments.
Barclays and Jefferies
Both have paused new dealings. Barclays had already reduced its exposure after Hindenburg’s accusations, while Jefferies awaits the outcome of current investigations.
Global reactions
Kenya, Bangladesh, and Sri Lanka are reevaluating their dealings with the Adani Group following bribery allegations. Kenya has canceled two major agreements: a $2 billion project to upgrade Jomo Kenyatta International Airport and a $736 million deal for constructing power transmission lines. Bangladesh has initiated a comprehensive review of power agreements, including a deal for the Adani Godda coal-fired plant.
A review committee is examining contracts signed between 2009 and 2024, potentially leading to renegotiations or cancellations, with assistance from international legal experts.
Sri Lanka has taken a more measured approach, launching an investigation into Adani’s local projects while continuing its partnership on key infrastructure.
The $1 billion Colombo terminal project remains on track for completion, with the Sri Lanka Ports Authority expressing confidence in the collaboration. However, both the finance and foreign ministries are scrutinizing the conglomerate’s investments as part of the government’s broader review.
Adani Group shares continued their upward momentum for a third consecutive day, with Adani Green Energy leading the gains at 14% in Friday morning trades. Adani Total Energy Solutions rose 12%, while Adani Total Gas and Adani Power gained 5% each. Other group companies, including Adani Enterprises, Adani Ports, Adani Wilmar, NDTV, Ambuja Cements, and ACC, saw gains of up to 5%. The rally follows Adani Green’s clarification refuting U.S. bribery allegations against group chairman Gautam Adani and other officials.