Adani Green to Receive $500 Million of IHC’s $2 Billion Investment in Adani Group
The transaction is expected to be completed in a month
Abu Dhabi-based public joint-stock company International Holding Company PJSC (IHC) announced an investment of $2 billion in three of Adani Group’s companies. Adani Green Energy will receive $500 million out of this investment.
Adani Transmission will receive $500 million, while Adani Enterprises will receive $1 billion through a preferential allotment route. The capital will be utilized to pursue the growth of the respective businesses, further strengthen the balance sheet, and for general corporate purposes.
All three companies are listed on the Bombay Stock Exchange and National Stock Exchange in India. The boards of Adani Green Energy, Adani Transmission, and Adani Enterprises met and approved the transaction. The transaction is expected to be completed in a month.
IHC and Adani portfolio are committed to growing the business partnership across multiple strategic opportunities in India, the Middle East, and Africa.
Adani Green Energy currently has a renewable energy portfolio of 20.4 GW across operational, under-construction, awarded, and acquired assets and Adani Transmission has a cumulative transmission network of 18,875 ckm, out of which 14,279 ckm is operational, and 4,596 ckm is at various stages of construction. Adani Enterprises has focused on building emerging infrastructure businesses like ports, airport management, roads, data center, and water infrastructure.
“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. 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.
In March this year, Adani Green Energy had raised a $288 million financing facility by extending its construction financing framework to $1.64 billion for its under-construction renewable asset portfolio through agreements signed with leading lenders. The facility is expected to help finance 450 MW of hybrid solar and wind projects that the company is setting up in Rajasthan.
In February, three subsidiaries of Adani Green Energy – Adani Green Energy (UP), Prayatna Developers, and Parampujya Solar Energy raised ₹6.12 billion by their maiden domestic bond issuance on a private placement basis.
Global corporate funding in the solar sector, including venture capital (VC) funding, private equity, public market, and debt financing, stood at a record ten-year high of $27.8 billion in 2021, a 91% growth compared to $14.5 billion raised in the last year, according to Mercom Capital Group’s 2021 Solar Funding and M&A Report.