Abu Dhabi fund backs Adani investments; Lanka and Tanzania port contracts

Monday, 2 December 2024 03:09 - - {{hitsCtrl.values.hits}}

NEW DELHI: Abu Dhabi’s sovereign fund, International Holding Company (IHC), which manages assets worth about $ 100 billion globally and has invested $ 1.7 billion in the Adani Group, on Thursday said it remains committed to the Ahmedabad-based ports-to-power conglomerate despite the US indictment of chairman Gautam Adani and seven business associates.

“Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors, as with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged,” IHC said in a statement.

The group, which has called the bribery charges as baseless and will legally contest them, also received comfort from statements on similar lines from the Sri Lanka and Tanzanians authorities regarding development ports in those countries.

Media reports in Sri Lanka on Wednesday quoted Ports Authority Chairman Admiral Sirimewan Ranasinghe (Retd.) as saying there was no intention of cancelling the contract with the Adani-led consortium for developing a $ 1 billion container terminal at Colombo port. “Nothing has been discussed about it (cancelling the deal) at all,” Urban Acres quoted him as saying.

A $ 535-million US International Development Finance Corporation loan for the development of the port reinforces the legitimacy of the project, the report quoted Ranasinghe as saying.

The Tanzanian Government has also reiterated its commitment to its agreements with Adani Ports, saying there were no concerns regarding the ongoing projects and that all contracts were fully compliant with Tanzanian law.

IHC is among the Adani Group’s largest investors. It had, in April 2022, invested roughly $ 500 million each in Adani Green Energy Ltd. and Adani Transmission, followed by another $ 1 billion in the flagship Adani Enterprises Ltd. However, the fund later sold its 1.26% stake in AGEL and 1.41% in ATL — now rechristened Adani Energy Solutions Ltd. — but raised its stake in AEL to over 5%. (Source: https://timesofindia.indiatimes.com/business/india-business/abu-dhabi-fund-backs-adani-investments-lanka-tanzania-their-port-contracts/articleshow/115778882.cms)