New Delhi : Abu Dhabi International Holding (IHC), one of the largest sovereign wealth funds managing assets close to $100 billion, has reaffirmed its support for the Adani Group, stating that its investment in the group’s view remains unchanged. . There were no changes despite the US indictment against the group’s founding president, Gautam Adani.
“Our partnership with the Adani Group reflects our confidence in their contribution to the green energy and sustainability sectors,” IHC, a major foreign investor in the Adani Group, said in a statement.
“As with all of our investments, our team continues to evaluate relevant information and developments. “At this time, our view on these investments remains unchanged.”
As of April 2022, IHC had invested around $500 million each in renewable energy arm Adani Green Energy and energy firm Adani Transmission and $1 billion in the group’s flagship company Adani Enterprises. It subsequently sold its 1.26 per cent stake in AGEL and 1.41 per cent in ATL, now called Adani Energy Solutions Ltd, but increased its stake in Adani Enterprises Ltd to more than 5 per cent.
IHC’s statement comes shortly after Adani Group emphasized that its chairman and his associates have not been charged under the US Foreign Corrupt Practices Act, but face three other charges, including fraud of securities and bank transfers, which are punishable by a monetary fine.
The US Department of Justice (US DOJ) indictment filed in a New York court last week does not name Ports-to-Energy group’s founding chairman Gautam Adani, his nephew Sagar or Vineet Jain. in no case related to conspiracy to rape. FCPA, AGEN: The company at the center of allegations of allegedly paying $265 million in bribes to Indian officials to secure solar energy sales contracts that could have generated $2 billion in profits over 20 years. The firm said in a statement to the stock exchange during the year.
The three, who are AGEN executives, are charged only with securities fraud conspiracy, wire fraud conspiracy and securities fraud, the company said. In general, the penalties for such charges are less severe than those for bribery.
Gautam and Sagar also face a civil suit for violating sections of the Securities Act and aiding and abetting Adani Green in violating the Act, the company had said.
Last week, Adani Group called all allegations baseless and said it would seek legal recourse to defend itself. Meanwhile, other international partners have also expressed their continued support. The Sri Lanka Ports Authority has expressed its continued confidence in its partnership with Adani as the Indian conglomerate plays a vital role in the expansion of the country’s port infrastructure.
With an investment of US$1 billion in the Colombo terminal, the project is poised to become the largest foreign direct investment in Sri Lanka’s port sector.
Sri Lanka Ports Authority Chairman Admiral Sirimewan Ranasinghe (retd) has reportedly said that there has been no discussion on canceling the project. This project will come into operation in the coming months.
Additionally, the Tanzanian government has reaffirmed its commitment to its agreements with Adani Ports as it believes there are no concerns regarding ongoing projects and all contracts are fully compliant with Tanzanian law.
In May 2024, Tanzania and Adani Ports finalized a 30-year concession agreement to operate Container Terminal 2 at the port of Dar es Salaam.
Additionally, Adani Ports acquired a 95 percent stake in state-owned Tanzania International Container Terminal Services for $95 million.
