Abu Dhabi’s IHC completes $2bn investment deal with Adani Group

Company is investing in three of Indian business conglomerate's green-focused companies

Adani Group's 648-megawatt solar project in the southern Indian state of Tamil Nadu. Photo: Adani Group

Abu Dhabi’s International Holding Company (IHC) has completed a Dh7.3 billion ($2bn) investment deal with India’s Adani Group that is led by billionaire industrialist Gautam Adani.

As part of the transaction, IHC is investing in three green-focused companies of the Adani Group including Adani Green Energy, Adani Transmission and Adani Enterprises, which are all listed on the Bombay Stock Exchange and National Stock Exchange of India.

IHC made the statement on Tuesday to the Abu Dhabi Securities Exchange (ADX), where its shares are traded. The deal was first announced on April 28.

"This strategic expansion of our business aligns with IHC's commitment to broadening and diversifying our investment portfolio,” said Syed Basar Shueb, chief executive and managing director of IHC. "There is no doubt that this transaction will directly and positively impact India's overarching ambition for long-term plans for clean energy.”

India, Asia’s third-largest economy, aims to boost its non-fossil fuel capacity by 500 gigawatts by 2030 and IHC’s investment “will support and accelerate Adani Group’s growth plan to supply the country with 45 gigawatts by 2030”, the company said.

The deal is also expected to further strengthen economic ties between the UAE and India as they focus on increasing non-oil trade to $100bn in five years, after the signing of the Comprehensive Economic Partnership Agreement this year.

“The deal represents 4.87 per cent of the total trade between the UAE and India, which has reached $41bn between 2020 and 2021,” Mr Shueb said. “The partnership between IHC and Adani Group greatly reflects the economic ties between the UAE and India beyond the oil sector.”

IHC is majority-owned by Abu Dhabi's PAL group of companies. The conglomerate includes more than 30 entities with 22,345 employees and is diversifying its holdings across property, agriculture, health care, food and beverage, utilities, retail and leisure sectors.

It is also included in the FTSE ADX 15 Index, which represents the top 15 largest and most liquid companies on the ADX.

Last year, IHC snapped up a controlling stake in Abu Dhabi investment company Al Qudra Holding and a 60 per cent share of Afkar Financial and Property Investments.

It also holds a 48 per cent share in Emirates Driving Company and a 60 per cent interest in Royal Horizon Holding and its subsidiaries, among others.

“This transaction marks the further strengthening of the India-UAE relationship and highlights the long history of business and trust between our peoples,” said Sagar Adani, executive director of Adani Green Energy.

The transaction was facilitated through First Abu Dhabi Bank and Standard Chartered Bank in co-ordination with UAE corporate law group Norton Rose and Indian company AZB Partners, IHC said.