IHC Completes AED 7.3 billion Adani Group Transaction

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  • 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: 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 has provided 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.

About International Holding Company

IHC was founded in 1998, as part of an initiative to diversify and grow non-oil business sectors in the UAE. Adhering to ‘Abu Dhabi’s Vision 2030’, the ADX listed company endeavours to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates. IHC is included in FTSE ADX 15 Index (FADX 15), which represents the top 15 largest and most liquid companies on the ADX. 

IHC has a clear objective of enhancing its portfolio through acquisitions, strategic investments, and business combinations. Comprising more than 30 entities and 22,345 employees, IHC seeks to expand and diversify its holdings across a growing number of sectors, including Real Estate, Agriculture, Healthcare, Food and Beverage, Utilities, Industries, IT and Communications, Retail and Leisure, and Capital.

With a core strategy to enhance shareholder value and achieve growth, IHC drives operational synergies and maximizes cost efficiencies across all verticals – it also continues to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad. As the world changes, and new opportunities arise, IHC remains focused on resilience, innovation and redefining the marketplace for itself, its clients, and its partners.

About Adani Green Energy Limited 

Adani Green Energy Limited (AGEL), is the renewable energy platform of Adani Portfolio. The company has one of the world’s largest renewable portfolios, with locked-in growth of 20.4 GW across operational, under-construction, awarded and acquired assets, catering to investment-grade counterparties. The company develops, builds, owns, operates, and maintains utility-scale grid-connected solar and wind farm projects. AGEL is focused on decarbonization of power generation and is helping India meet its sustainability goals. Mercom Capital, the US-based think tank has ranked Adani Group as the #1 global solar power generation asset owner. AGEL has also been awarded as Global Sponsor of the Year by Project Finance International (PFI) recognizing AGEL as a key driver of energy transition. 

About Adani Transmission Limited 

Adani Transmission Limited (ATL) is the transmission and distribution business arm of Adani Portfolio. ATL is the country’s largest private transmission company with a cumulative transmission network of 18,875 ckm, out of which 14,279 ckm is operational and 4,596 ckm is at various stages of construction. ATL also operates a distribution business serving about 12 million+ consumers in Mumbai. With India’s energy requirement set to quadruple in coming years, ATL is fully geared to create a strong and reliable power transmission network and work actively towards serving retail customers and achieving ‘Power for All’ by 2022. 

About Adani Enterprises Limited 

Adani Enterprises Limited (AEL) is the incubation arm of Adani Portfolio. Over the years, Adani Enterprises has focused on building emerging infrastructure businesses, contributing to nation-building and divesting them into separate listed entities. Having successfully built unicorns like Adani Ports & SEZ Limited, Adani Transmission Limited, Adani Power Limited, Adani Green Energy Limited, Adani Total Gas Limited and Adani Wilmar Limited, the company has contributed significantly to make the country self-reliant with our portfolio of robust businesses. AEL is leading decarbonization of industries and mobility through Adani New Industries Limited. Other next-generation of AEL’s strategic business investments are centered around airport management, roads, data center and water infrastructure which has significant scope for value unlocking.