Abu Dhabi-based conglomerate International Holding Company PJSC (IHC) has entered into an agreement to invest $2 billion (AED 7.3 billion) in three Adani Group companies.
The investment will be made in Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL) and Adani Enterprises Ltd (AEL) through preferential share allotment.
IHC will invest $500 million each in AGEL and ATL and $1 billion in flagship AEL, the regulatory filings showed.
The fresh capital will be used by the Adani Group companies for expansion, strengthening the balance sheet and for general corporate purposes, said IHC.
The investment is subject to shareholder and regulatory approvals.
“We are deeply committed to the shared vision and values of investment in sustainable infrastructure, green energy and energy transition. This is a landmark transaction and marks a start of a wider relationship between the Adani Group and IHC and attracting further investment from UAE into India,” said Sagar Adani, Executive Director of AGEL.
Syed Basar Shueb, CEO and Managing Director of IHC, added, "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. 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."
IHC was founded in 1998 with the goal of diversifying and growing the UAE's non-oil business sectors.
Acquisitions, strategic investments, and business combinations are all part of IHC's plan to expand its portfolio. IHC aims to extend and diversify its assets across a growing variety of sectors, including real estate, agricultural, healthcare, food and beverage, utilities, industries, IT and communications, retail and leisure, and capital, with more than 30 entities and 21,613 employees.