International Holding Company PJSC (IHC) has signed a US$2 billion (AED 7.3 billion) Investment Agreement with Adani Group, as primary capital in three Adani portfolio companies, Adani Green Energy (AGEL), Adani Transmission (ATL) and Adani Enterprises (AEL) through the preferential allotment route.
“We are delighted to commence this inter-generational relationship with IHC. We are deeply committed to the shared vision and values of investment in sustainable infrastructure, green energy, and energy transition,” said Sagar Adani, CEO of AGEL.
“This is a landmark transaction and marks a start of a wider relationship between Adani Group and IHC and attracting further investment from UAE into India,” he added.
Adani’s three companies – AGEL, ATL and AEL – cover the green portfolio of the Adani Group, which is an Indian multinational conglomerate.
All of them have key aspects of ESG embedded into their operations. This investment is testament to the IHC’s -an Abu Dhabi-based conglomerate- and the Adani Portfolio’s shared vision and commitment of investing in sustainable companies.
“This will be a long-term investment in India as the country is driving much innovation globally, including the green energy sector. The opportunity to earn a compelling return on investment in green energy has never been greater,” said Syed Basar Shueb, CEO and managing director of IHC.
IHC will invest US$500 million (AED 1.83 billion) in AGEL, US$500 million (AED 1.83 billion) in ATL and US$1 billion (AED 3.67 billion) in AEL, in compliance with SEBI regulations.
All companies are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.
“We are confident that Adani companies will play a significant role in unleashing India’s total green energy potential, reflecting positively on our shareholders’ commitment,” added Syed Basar Shueb.
The transaction is expected to be completed within a month after all the necessary approvals are obtained.
The capital will be used to grow these companies, to further strengthen their balance sheet, and for general corporate purposes.
