TotalEnergies, the French energy giant, has announced a pause on any new financial contributions to Adani Group ventures following U.S. authorities’ indictment of certain Adani executives over an alleged corruption scheme linked to Adani Green Energy Limited (AGEL).
While the indictment does not implicate AGEL or its related companies, TotalEnergies, which holds a 19.75% stake in AGEL and a 50% stake in three joint ventures operating renewable assets, stated it will “take all relevant actions to protect its interests.”
In a statement, TotalEnergies emphasized its strict anti-corruption stance and clarified that its investments were made in full compliance with international laws and internal governance processes. The company noted it was unaware of any ongoing investigations at the time of its investments.
“Until the accusations against the Adani Group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in Adani Group companies,” the statement said.
The Adani Group, a ports-to-power conglomerate, reported a total debt of ₹2.58 lakh crore as of September 30, 2024. This includes ₹2.37 lakh crore in long-term debt and ₹20,724 crore in working capital loans. Despite the debt, the group maintains ₹53,024 crore in cash reserves, bolstering its liquidity.
The group’s debt mix shows 42% from domestic banks, 27% from global banks, and 23% from global capital markets. Indian financial institutions and capital markets form smaller portions of the mix. The average debt maturity ranges from 4.4 years for global banks to 9.25 years for domestic lenders.
Adani has highlighted its ability to service debt, maintaining a borrowing ratio under 2.5 times EBITDA. With 70% of its earnings tied to contracts, the group assures investors of growth visibility despite the ongoing allegations and scrutiny.
As TotalEnergies awaits clarity on the allegations, its decision to halt new investments marks a significant moment in its partnership with Adani Green Energy.