Abu Dhabi’s IHC Reaffirms Its Support To The Adani Group Amid Legal Challenges

Abu Dhabi’s International Holding Company (IHC), a major sovereign wealth fund managing nearly $100 billion in assets, has reiterated its confidence in the Adani Group despite recent legal issues surrounding the conglomerate’s founder, Gautam Adani. In a statement, IHC, a key international investor in the Adani Group, emphasized its commitment to the partnership, particularly in the areas of green energy and sustainability.

Stable Outlook on Investments

“Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors,” IHC stated. The company affirmed that its outlook on investments in the Adani Group remains unchanged, despite ongoing evaluations of developments related to the legal proceedings.

In April 2022, IHC invested $500 million each in Adani Green Energy and Adani Transmission, along with $1 billion in Adani Enterprises. Although IHC later sold stakes in Adani Green Energy and Adani Transmission, it increased its holding in Adani Enterprises to over 5%, demonstrating continued confidence in the conglomerate’s flagship entity.

Legal Challenges and Adani Group’s Response

The U.S. Department of Justice (DoJ) recently filed charges in a New York court, including securities fraud conspiracy and wire fraud conspiracy, against executives associated with Adani Green Energy. However, Gautam Adani and other key figures were not implicated in allegations related to violations of the U.S. Foreign Corrupt Practices Act (FCPA).

Adani Green Energy Limited (AGEL), the subsidiary at the center of the allegations, denied the accusations, calling them baseless. The company stated that it would pursue legal avenues to defend itself, emphasizing that the charges carry less severe penalties compared to bribery allegations.

International Support for Adani Group

Despite the legal challenges, other international partners have expressed their continued confidence in the Adani Group.

• Sri Lanka: The Sri Lanka Ports Authority reaffirmed its partnership with Adani, highlighting the group’s pivotal role in expanding the country’s port infrastructure. The $1 billion investment in the Colombo terminal marks the largest foreign direct investment in Sri Lanka’s port sector, with operations expected to begin in the coming months.
• Tanzania: The Tanzanian government also expressed unwavering support for its agreements with Adani Ports. In May 2024, Adani Ports finalized a 30-year concession to operate Container Terminal 2 at Dar es Salaam port and acquired a 95% stake in Tanzania International Container Terminal Services for $95 million.

The Adani Group remains committed to its global infrastructure and green energy projects, bolstered by the confidence of key international partners. As legal proceedings unfold, the group’s ability to maintain investor trust highlights its resilience in navigating complex challenges on the global stage.

Also Read: Gautam Adani Faces Securities Fraud Allegations, Not FCPA Charges: Adani Group Clarifies