UAE’s IHC completes $2bn investment deal with India’s Adani Group

By Shilpa Annie Joseph, Official Reporter
  • Follow author on
Representational Image

UAE-based investment firm, International Holding Company (IHC) has completed a $2 billion (AED7.3 billion) investment transaction in the Adani Portfolio companies, Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL), and Adani Enterprises Limited (AEL).

IHC has invested $500 million (AED 1.83 billion) in AGEL, $500 million (AED 1.83 billion) in ATL, and $1 billion (AED 3.67 billion) in AEL.

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.

The company said in a statement that IHC’s investment will support and accelerate Adani Group’s growth plan to supply the country with 45GW (9 percent of India’s non-fossil energy) by 2030.

Syed Basar Shueb
Syed Basar Shueb

“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 percent 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.”

Adani Electricity Mumbai Limited, the distribution arm of Adani Transmission Limited, has legally covenanted targets to increase the renewable energy penetration from 3 percent in FY21 to 60 percent by FY27. IHC’s investment will support ATL in this transformational journey.

Mr. Sagar Adani, Executive Director of Adani Green Energy Ltd, said that, “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, the Middle East, and Africa as we embark on this inter-generational relationship,” Mr. Adani added.

According to the company statement, “Adani Enterprises Limited, through its wholly-owned subsidiary Adani New Industries Limited, has undertaken to invest $50 billion over the next 9 years forming a new green hydrogen vertical focused on the decarbonization of industrial energy and mobility.”

Related: UAE’s GII acquires 51% of Saudi Arabia’s Almeswak for $530mn