Billionaire Gautam Adani withdrew from a major US loan deal worth $553 million. This loan was meant to fund a port terminal being developed by Adani Ports and Special Economic Zone Limited in Sri Lanka’s capital, Colombo. The withdrawal from the loan deal underscores the end of an agreement between India and the US to counter China’s growing influence in Sri Lanka.
Due to the withdrawal from the loan offered by the US International Development Finance Corporation (DFC), Adani Ports and Special Economic Zone Ltd shares might be in the spotlight today.
An entity majority-owned by Gautam Adani, which pulled back from the US Loan deal, was indicted in court last month under a bribery scheme. The allegations on the company for indictment were that it paid or promised more than $250 million in bribes to Indian government officials to secure solar energy contracts. However, the company denied all the allegations.
In a filing, the company said, “The project will be financed through the company’s internal accruals and capital management plan.” The statement didn’t mention the indictment of other executives from Adani Group or Adani, the second-richest man in Asia.
Despite the indictment, the Adani Group is trying to show that it’s doing business as usual. The billionaire founder Gautam Adani sat close to PM Modi at the public conference on Monday. Here, the group pledged tens of billions of dollars in domestic investment.
