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NEW YORK: An advocacy group focused on the impact of bond markets on climate change on Monday urged major bond investors to shy away from India’s Adani Group.
U.S. firm Hindenburg Research last week prompted a multi-billion dollar sale of shares in the Indian group by accusing it of improper use of offshore tax havens and high debt. Billionaire Chairman Gautam Adani, one of the richest people in the world, dismissed these as baseless.
A group of activists involved in a campaign called Toxic Bonds said they sent letters to asset managers including BlackRock, Allianz and Pimco urging them to refuse any new investments or credit deals with Adani and to publicly sell their holdings. Stated.
Spokespeople for Adani Group, BlackRock, Allianz and Pimco did not immediately respond to requests for comment.
Green bonds, which are used to finance certain projects that are believed to have environmental benefits, are one of Adani’s funding sources.
Hindenberg’s findings “undermine investor confidence that proceeds from Adani’s planned green issues this year will be properly reversed,” said an investor advocacy group that participated in the campaign. SumOfUs campaign manager Nick Haynes wrote in a copy of the letter sent. to Reuters.
Adani’s empire includes an interest in coal, a major source of greenhouse gas emissions. The Carmichael Mine in eastern Australia produces about 10 million tonnes of coal for export each year.
The company says it will invest more than $50 billion in green hydrogen. It is a carbon-free fuel that many hope will reduce emissions from heavy industry. But the letter said there was a risk that investment would boost emissions-intensive activities.
“Given the interconnected financial nature of the Adani Group, it is clear that purchasing debt from Adani’s subsidiaries will in turn support Adani’s mining operations,” Haynes said in the letter. ‘ said.
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