Despite the usa accusing Gautam Adani of bribery, several major banks in japan plan to maintain relationships with the billionaire, while other global companies like Barclays are reassessing their risk exposure to this indian conglomerate.
According to insiders, mizuho financial group expects that the latest incident involving Adani will not have a lasting impact and intends to continue supporting the group. Insiders noted that sumitomo mitsui financial group and mitsubishi ufj financial group also have no plans to withdraw and will remain open to providing new financing when needed.
Spokespersons for the three banks in Tokyo declined to comment. A representative from Adani Group did not provide an immediate comment.
The support from japanese banks highlights the differing views of financial companies regarding the Adani matter, previously the usa prosecutor charged Adani and others, alleging he helped facilitate a $0.25 billion bribery scheme. Adani Group has denied these allegations, stating they are baseless. The company's representatives have been meeting with banks and investors to reassure them and explain their stance on the matter.
Although the group is currently unlikely to propose new financing demands, some multinational banks concerned about reputational risk are limiting their risk exposure to this largest indian conglomerate. Meanwhile, cash-rich japanese banks are not as anxious because they support some assets with strong cash flow capabilities. Insiders indicated that Adani has close ties with the government, and any legal procedures initiated by the usa will take a long time.
According to insiders, Barclays has currently suspended new loans or financing to the group.
Insiders noted that before further allegations were clarified following the prosecution in the usa, jefferies financial group was not discussing new deals with Adani Group. Insiders stated that the bank has not yet made a formal decision on whether to suspend or stop trading, and is waiting for determined results regarding the allegations before engaging in new business.
Meanwhile, insiders also mentioned that at least two other major american banks, which had originally planned to get a piece of the debt financing from Adani Group in recent months, have now put those plans on hold.