IHC Completes AED 7.3 billion Adani Group TransactionMay 17, 2022
- IHC investment in Adani Group represents 4.87% of the total trade between the UAE and India.
- IHC’s partnership with Adani will generate 9% of India's non-fossil energy capacity by 2030.
- Adani AGEL to develop and operate a renewable energy generation capacity of 25GW by 2025 and 45GW by 2030.
Abu Dhabi, UAE; 17 May, 2022: Abu Dhabi-based global strategic investment company, International Holding Company PJSC (IHC), announced today the completion of a AED 7.3 billion (USD 2 billion) investment transaction in the Adani Portfolio companies, Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL) and Adani Enterprises Limited (AEL).
IHC will provide capital to Adani Green Energy Ltd (ADNA.NS), Adani Transmission Ltd (ADAI.NS), and Adani Enterprises Ltd (ADEL.NS), which are all listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India – through the preferential allotment route.
Syed Basar Shueb, CEO and Managing Director of IHC, 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. The deal represents 4.87% of the total trade between the UAE and India, which has reached USD 41 billion between 2020 and 2021; the partnership between IHC and Adani Group greatly reflects the economic ties between the UAE and India beyond the oil sector."
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 (9% of India's non-fossil energy) by 2030.
Sagar Adani, Executive Director of Adani Green Energy Ltd, said: “We are delighted to complete this landmark transaction with IHC. We value IHC’s pioneering role as a strategic investor in sustainable energy, healthcare, food, infrastructure and Energy Transitition in the UAE. This transaction marks the further strengthening of the India – UAE relationship and highlights the long history of business and trust between our peoples. We share IHC’s strategic vision for India, Middle East and Africa as we embark on this inter-generational relationship.”
Adani Electricity Mumbai Limited, the distribution arm of Adani Transmission Limited has legally covenanted targets to increase the renewable energy penetration from 3% in FY21 to 60% by FY27. IHC’s investment will support ATL in this transformational journey.
Adani Enterprises Limited, through its wholly owned subsidiary Adani New Industries Limited, has undertaken to invest USD 50bn over the next 9 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.
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