International Holding Company (IHC) announced on Tuesday the completion of an AED7.3 billion ($2 billion) investment transaction in the Adani Portfolio companies.
IHC has provided capital to Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL) and Adani Enterprises Limited (AEL), which are all listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India – through the preferential allotment route.
The deal represents 4.87 percent of the total trade between the UAE and India, which has reached $41 billion between 2020 and 2021, said Syed Basar Shueb, CEO and Managing Director of IHC.
“The partnership between IHC and Adani Group greatly reflects the economic ties between the UAE and India beyond the oil sector,” he said.
“This strategic expansion of our business aligns with IHC’s commitment to broadening and diversifying our investment portfolio. There is no doubt that this transaction will directly and positively impact India’s overarching ambition for long-term plans for clean energy,” he added.
India’s total electricity generating capacity is more than 390GW, and renewables exceed 100 GW. Last year at the United Nations Climate Change Conference, the Indian government announced that by 2030 India’s non-fossil fuel capacity would be 500GW. IHC’s investment will support and accelerate Adani Group’s growth plan to supply the country with 45GW, which is 9 percent of India’s non-fossil energy, by 2030.
Sagar Adani, Executive Director of Adani Green Energy Ltd, said, “This transaction marks the further strengthening of the India – UAE relationship and highlights our people’s long history of business and trust. We share IHC’s strategic vision for India, Middle East and Africa as we embark on this inter-generational relationship.”
Adani Enterprises Limited, through its wholly-owned subsidiary Adani New Industries Limited, has undertaken to invest US$50bn over the next nine years forming a new green hydrogen vertical focussed on decarbonisation of industrial energy and mobility.
The transaction was facilitated via First Abu Dhabi Bank and Standard Chartered Bank; in coordination, UAE corporate law firm Norton Rose, and Indian firm AZB Partners, provided legal advisory and actuarial support, respectively, and WTS Dhruva acted as the tax advisor.