The Adani Group and IHC subsidiary launched a joint venture to create a technology platform focused on AI and blockchain
Abu Dhabi-based conglomerate International Holding Co’s (IHC) is confident regarding billionaire Gautam Adani-led Adani Group's green energy and sustainability portfolios. The conglomerate's outlook 'remains unchanged' on investments in the Group despite the US indictment of Gautam Adani and his six associates in bribery scheme.
“Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors,” said the conglomerate in a statement. “As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged,” the company added.
Last year, IHC increased its stake in Adani Enterprises to nearly 5 per cent. Moreover, the Adani Group and IHC subsidiary launched a joint venture to create a technology platform focused on AI and blockchain.
The Abu Dhabi-based company’s stance might be a relief to the Adani Group, which is dealing with storms nationally and internationally. Following the US indictment order that became public last week, the Group has been under the scanner from various opposition parties in India protesting and demanding a probe in the matter. Following the charges by US prosecutors, the securities and exchange board of India (Sebi), began investigating the Adani Group. The Chandrababu Naidu-led Andhra Pradesh government is reviewing the power supply agreement signed with the Group by the previous state government.
The company has also faced a setback with projects in countries Kenya, Sri Lanka and Bangladesh. Recently, Kenya cancelled a $2 billion contract with the Adani Group to lease its Jomo Kenyatta International Airport for 30 years in exchange of the Group building a second runway. Last month the Kenyan President William Ruto also cancelled a 30-year public-private partnership worth $736 million signed by the country’s energy ministry with the Adani Group to construct power transmission lines.
Its power supply agreement (PSA) with Bangladesh is also under scrutiny of the country’s high court, which earlier this month ordered the Muhammad Yunus-led interim government to set up a committee to review the PSA.
Apart from this, the US international development finance corporation (DFC), which agreed to give nearly $553 million in loans to Adani Ports for building a port in Sri Lanka, is mulling over its decision after the US indictment surfaced.
“The project has not reached financial close or signed a loan agreement...We continue to conduct due diligence to ensure that all aspects of the project meet our rigorous standards before any loan disbursements are made,” an official of the US agency told the Mint.