IHC invests $2bn into Adani Portfolio companies for clean energy

Investment will positively impact India’s overarching ambition for long-term clean energy, says IHC CEO

International Holding Company (IHC) has announced the completion of a $2bn investment transaction in the Adani Portfolio companies – Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL), and Adani Enterprises Limited (AEL). As part of the agreement, IHC provided capital to AGEL, ATL and AEL, which are all listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India – through the preferential allotment route.

On the deal, CEO and Managing Director Syed Basar Shueb said this strategic expansion aligns with IHC’s commitment to broadening and diversifying its 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 $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,” he explained.

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.

AEL, through its wholly owned subsidiary Adani New Industries Limited, has undertaken to invest $50bn over the next nine years to form a new green hydrogen vertical focused on decarbonisation of industrial energy and mobility. Meanwhile, AGEL is set to develop and operate a renewable energy generation capacity of 25GW by 2025 and 45GW by 2030.

Adani Electricity Mumbai Limited, the distribution arm of ATL has legally covenanted targets to boost the renewable energy penetration from 3% in FY 2021 to 60% by FY 2027. The Indian business conglomerate pointed out that IHC’s investment will help support ATL in this transformational journey.

AGEL Executive Director Sagar Adani said: “We are delighted to complete this landmark transaction with IHC. We value its pioneering role as a strategic investor in sustainable energy, healthcare, food, infrastructure and energy transition 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 people. We share IHC’s strategic vision for India, Middle East and Africa as we embark on this inter-generational relationship.”

India’s total electricity generating capacity is more than 390GW, and renewables exceed 100GW. 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, concluded Shueb.

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