Adani Group’s Loan Approval from US Subject to Scrutiny of Hindenburg Allegations

Adani has been making news in the media from quite some time, which led him stay still alive and this time for loan extension by the US.  The US government has now extended a $553 million loan to the company – Adani Group for their container terminal project found in Sri Lanka. Interestingly, this has come up despite all the allegations of the corporate fraud found against the conglomerate. The loan seems to have come up as an approval by the the global body called DFC or the International Development Finance Corporation, which renders financing for the infrastructure projects found in developing nations.

The DFC has conducted a due diligence investigation on the Adani Group , which has come into force in the response to a scathing report submitted and made public by the fintech research company called Hindenburg Research. They accused the group about the conglomerate of stock manipulation and other financial misconduct in the due course of time. The DFC determined that the allegations found against Adani group failed to apply over the Adani Ports & Special Economic Zone Ltd., the subsidiary responsible for the Sri Lankan project.

The DFC official said that the agency will continue to monitor Adani to ensure that the US government is not supporting financial misconduct. However, the official also noted that it is important for the US to approach infrastructure projects differently than China, which has been accused of using its Belt and Road Initiative to advance its own interests. The Sri Lankan port deal is one of the largest US government-backed infrastructure projects in Asia. It is part of a broader effort to counter growing Chinese influence in the region.