Japanese banks sticking with Adani as Jefferies, Barclays review ties

Japan's biggest banks plan to maintain ties to billionaire Gautam Adani despite US bribery charges against him, even as other global companies including Barclays are reassessing their exposure to the Indian conglomerate.

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MUMBAI -

Mizuho Financial Group expects the latest saga surrounding Adani will not have a long-lasting impact and intends to continue supporting the group, sources said.

Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group also have no plans to pull back and will be open to fresh financing if needed later, according to the sources.

The Japanese support underscores the divide among finance companies over Adani after he and others were charged by the US Justice Department with plotting a US$250 million (S$336 million) scheme to bribe Indian government officials to win solar energy contracts.

Adani's massive ports-to-power group has denied the charges and called the allegations baseless. Its representatives have been meeting lenders and investors to reassure them and explain its stance on the matter.

While it is unlikely there will be new financing requests by the group for now, some global banks that are concerned about reputational risk are curbing their exposure to one of India's biggest conglomerates.

The capital-rich Japanese lenders take comfort that they are backing cash-generative assets.

Adani has strong government ties and any legal processes brought by the US will take a long time, according to the sources.