(MENAFN- Khaleej Times) IHC has provided capital to Adani Green Energy Ltd, Adani Transmission Ltd, and Adani Enterprises Ltd, which are all listed on the Bombay Stock Exchange and National Stock Exchange in India – through the preferential allotment route IHC's investment will support and accelerate Adani Group's growth plan to supply the country with 45GW (nine per cent of India's non-fossil energy) by 2030. — Supplied photo By Staff Report
Published: Tue 17 May 2022, 7:49 PM
Last updated: Tue 17 May 2022, 7:58 PM
International Holding Company (IHC) announced on Tuesday the completion of an Dh7.3 billion ($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, Adani Transmission Ltd, and Adani Enterprises Ltd, 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,' Shueb said.
'The deal represents 4.87 per cent 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 said.
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 (nine per cent 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 Transition in the UAE. This transaction marks the further strengthening of the India – UAE relationship and highlights our people's long history of business and trust. 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 three per cent in FY21 to 60 per cent 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 $50 billion over the next nine 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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