International Holding Company (IHC) completed an AED7.3 billion ($2 billion) investment transaction in Adani Portfolio firms Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL), and Adani Enterprises Limited on Tuesday (AEL).
Through the preferential allocation process, IHC has contributed capital to Adani Green Energy, Adani Transmission, and Adani Enterprises, which are all listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.
“This strategic growth of our business corresponds with IHC’s goal to widening and diversifying our investment portfolio,” stated Syed Basar Shueb, CEO and Managing Director of IHC. There is little question that this acquisition will have a direct and good influence on India’s broad vision for long-term clean energy initiatives. The agreement represents 4.87 percent of overall commerce between the UAE and India, which is expected to reach $41 billion between 2020 and 2021; the cooperation between IHC and Adani group highlights the UAE and India’s economic links beyond the oil industry.”
India’s overall energy generation capacity exceeds 390GW, with renewables exceeding 100GW. The Indian government promised this year at the United Nations Climate Change Conference that India’s non-fossil fuel capacity will reach 500GW by 2030. The investment by IHC would assist and accelerate Adani Group’s expansion strategy of supplying the country with 45GW (9 percent of India’s non-fossil energy) by 2030.
“We are happy to finalize this milestone deal with IHC,” said Sagar Adani, Executive Director of Adani Green Energy Ltd.
We appreciate IHC’s pioneering position in the UAE as a strategic investor in sustainable energy, healthcare, food, infrastructure, and Energy Transition. This deal cements the India-UAE connection and exemplifies our people’s long history of business and trust. As we start on this intergenerational connection, we share IHC’s strategic ambition for India, the Middle East, and Africa.”
Adani Electricity Mumbai Limited, the distribution arm of Adani Transmission Limited, has legally committed to raising renewable energy penetration from 3% in FY21 to 60% by FY27. The funding from IHC will help ATL on its development path.
Adani Enterprises Limited, through its wholly-owned subsidiary Adani New Industries Limited, has committed to investing $50 billion over the next nine years in establishing a new green hydrogen vertical focused on decarbonizing industrial energy and transportation.
The deal was conducted by First Abu Dhabi Bank and Standard Chartered Bank; in collaboration, UAE corporate law firm Norton Rose and Indian business AZB Partners provided legal and actuarial help, respectively, while WTS Dhruva served as the tax advisor.