India's Adani completes $2 billion deal with UAE's Global Holdings - Energy

An investment deal has been completed between the Indian Adani Group and the International Holding Company in the UAE, worth about 7.3 billion UAE dirhams ($ 1.99 billion).

Under the deal, the Emirati company supports the acceleration of plans to supply India with about 45 gigawatts, or about 9% of non-fossil energy, by 2030.

Under the deal, the Emirates Global Holding Company, based in Abu Dhabi, provided capital for the three companies listed on the Bombay Stock Exchange and the National Stock Exchange in India, through the preferential allocation route, according to what was published by the Emirates News Agency “WAM.”

The Adani group of companies, in whose portfolio the transaction was completed, includes Adani Green Energy, Limited Translation and Enterprise.

Diversification of the investment portfolio

Sayed Basr Shuaib, CEO and Managing Director of the International Holding Company, said that this strategic expansion of the company’s business is in line with its commitment to expand and diversify its investment portfolio.

Adani Hindi
Adani Company – Image via MarketFeed

“There is no doubt that this deal will directly and positively affect India’s overall ambition and long-term plans for clean energy,” he added.

According to the CEO, the deal represents about 4.87% of the total trade between the UAE and India, which amounted to $41 billion between 2020 and 2021, and the partnership between Global Holding Company and Adani Group reflects the economic relations between the two countries outside the oil sector.

The total electricity generation capacity in India is more than 390 gigawatts, while renewable energy exceeds 100 gigawatts. The deal will support the acceleration of the growth plans of the Adani Group to supply India with about 45 gigawatts of renewable energy, or about 9% of production, by 2030.

During the recent COP26 climate summit in Scotland, India announced that by 2030, India’s non-fossil fuel capacity will be 500 gigawatts.

Strengthening UAE-India relations

The CEO of Adani Green Energy, Sagar Adani, said that this historic deal with the UAE Global Holding Company reflects its leading role as a strategic investor in sustainable energy, healthcare, food, infrastructure and energy transmission.

He continued, “This deal represents a strengthening of the relationship between India and the UAE, and the connection to individuals, as we share the global holding company’s strategy in India, the Middle East and Africa, and consider it the beginning of a relationship between generations.”

Adani Electric Mumbai, the distribution arm of Adani Limited Transmission, has statutory targets to increase renewable energy penetration from 3% in FY21, to 60% by FY2027, and the UAE company’s investments will support the Indian company in this transformation.

Investment of 50 million dollars

For its part, Adani Enterprises Ltd., through its subsidiary New Limited Industry, has pledged to invest $50 billion over the next 9 years to form a new green hydrogen pillar focused on decarbonizing industrial energy and mobility.

It is noteworthy that the new deal between the International Holding Company and the Indian group obtained facilities through First Abu Dhabi Bank and Standard Chartered Bank.

The UAE law firm “Norton Rose” and the Indian firm “AZP” also provided legal advice and actuarial support.

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