ABU DHABI: Abu Dhabi’s International Holding Company (IHC), one of the largest sovereign funds with assets under management of nearly $100 billion, has reiterated its confidence in the Adani Group, emphasising that its investment outlook remains unchanged despite recent allegations against the conglomerate’s founder chairman, Gautam Adani, in a US indictment.
IHC said its partnership with the Adani Group reflects its confidence in their contributions to the green energy and sustainability sectors.
IHC stated, “As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged.”
Abu Dhabi’s IHC had previously invested $500 million each in Adani Green Energy and Adani Transmission (now Adani Energy Solutions) and a further $1 billion in Adani Enterprises.
While it has since reduced its stakes in the former two, IHC has increased its holding in Adani Enterprises to over 5 per cent.
Adani defends allegations
The reaffirmation from IHC comes shortly after the Adani Group addressed the charges outlined in the US Department of Justice’s indictment. The allegations include securities and wire fraud but notably exclude violations of the Foreign Corrupt Practices Act (FCPA).
The group denied the accusations, labeling them baseless, and announced plans to pursue legal recourse.
The company clarified that executives Gautam Adani, Sagar Adani, and Vneet Jaain face charges unrelated to bribery, focusing instead on securities fraud and wire fraud conspiracy. Adani Green Energy (AGEL), the entity at the center of the controversy, also dismissed the allegations of bribery involving $265 million to secure solar power contracts as unfounded.
International support
Other international partners have also expressed their continued support for the group. The Adani Group’s $1 billion investment in the Colombo Port terminal remains Sri Lanka’s largest foreign direct investment in the port sector.
Admiral Sirimewan Ranasinghe (Retd), chairman of the Sri Lanka Ports Authority, confirmed there are no discussions regarding project cancellation, highlighting its importance to the country’s port infrastructure.
The Tanzanian government has reaffirmed its agreements with Adani Ports, underscoring that all contracts are fully compliant with Tanzanian laws.
The projects continue to move forward without concerns, reflecting the confidence in their execution. The global endorsements suggest that key partners remain committed to their collaborations with the Adani Group, unaffected by the ongoing legal issues in the US.
“This support highlights the resilience of the conglomerate’s international partnerships, particularly in strategically significant sectors like energy and infrastructure,” said sources close to Adani Group.
