International Holding Company (IHC), an Abu Dhabi-based investment company, announced it completed a $2 billion investment into Indian Adani Group’s portfolio of companies focused on clean energy.
The deal is substantial, representing 4.87% of total trade between the Unated Arab Emirates and India. It also represents a new direction for investments between the Middle Eastern petroleum powerhouse and one of the world’s largest markets.
“The partnership between IHC and Adani Group greatly reflects the economic ties between the UAE and India beyond the oil sector,” Syed Basar Shueb, CEO and Managing Director of IHC, said. “There is no doubt that this transaction will directly and positively impact India’s overarching ambition for long-term plans for clean energy.”
The move additionally broadens and diversifies the IHC investment portfolio, according to Shueb.
IHC’s investment will support and accelerate Adani Group’s growth plan to supply the country with 45 gigawatts (GW) of energy – 9% of India’s non-fossil fuel energy – by 2030. India has sought to increase the role of renewables in power generation in an effort to battle global warming.
IHC provided capital to Adani Green Energy Ltd. (AGEL), Adani Transmission Ltd. (ATL), and Adani Enterprises Ltd., which are all listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India through the preferential allotment route.
AGEL is the renewable energy platform of Adani Portfolio, 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.
ATL is the transmission and distribution business arm of Adani Portfolio and the country’s largest private transmission company. ATL also operates a distribution business serving more than 12 million consumers in Mumbai. With India’s energy requirements set to quadruple in coming years, ATL is fully geared to create a strong and reliable power transmission network.
Adani Electricity Mumbai Limited, the distribution arm of Adani Transmission Limited, seeks to increase renewable energy penetration from 3% in FY21 to 60% by FY27, according to the statement.
Adani Enterprises Limited, through its wholly owned subsidiary Adani New Industries Limited, has undertaken to invest $50 billion over the next nine years to form a new green hydrogen vertical focused on decarbonisation of industrial energy and mobility.
The deal builds long-term ties between the two nations, according to Sagar Adani, Executive Director of Adani Green Energy Ltd.
“This transaction marks the further strengthening of the India–UAE relationship and highlights the long history of business and trust between our peoples,” Adani said. “We share IHC’s strategic vision for India, Middle East and Africa as we embark on this inter-generational relationship.”
IHC was founded in 1998 as part of an initiative to diversify and grow non-oil business sectors in the UAE. The ADX-listed company endeavours to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates.