IHC Reaffirms Outlook On Adani Group Investments; Sri Lanka Port Authority, Tanzania Extend Support

Abu Dhabi's International Holding Company has reaffirmed its support for the Adani Group, maintaining that its investment outlook remains unchanged.

In a statement, IHC, a key foreign investor in the Adani Group, emphasised that their partnership is grounded in the Adani Group’s significant contributions to the green energy and sustainability sectors.

"As with all of our investments, our team continuously monitors relevant information and developments. At this time, we remain confident in our outlook for these investments," the statement said.

The IHC’s reaffirmation of support comes shortly after the Adani Group clarified that neither Gautam Adani nor his associates face charges under the US Foreign Corrupt Practices Act.

The US Department of Justice indictment, filed in a New York court last week, does not link Gautam Adani, his nephew Sagar, or senior executive Vneet Jaain to any conspiracy involving violations of the FCPA, the firm had said in a filing to the stock exchange.

Adani Group last week denied all allegations as baseless and said it would seek legal recourse to defend itself.

IHC had, in April 2022, invested about $500 million each in the renewables arm Adani Green Energy and power company Adani Transmission and a further $1 billion in the group's flagship Adani Enterprises. Later, it sold its 1.26% stake in Adani Green Energy and 1.41% in Adani Transmission, now called Adani Energy Solutions, but hiked its stake in Adani Enterprises Ltd to over 5%.

Meanwhile, other international partners have also expressed their continued support. The Sri Lanka Ports Authority has expressed its ongoing confidence in its partnership with Adani, as the Indian group plays a vital role in expanding the country's port infrastructure. With a $1 billion investment in the Colombo terminal, the project is poised to be the largest foreign direct investment in Sri Lanka's port sector.

Sri Lanka Ports Authority chairman Admiral Sirimewan Ranasinghe (Retd) has reportedly stated that there are no discussions regarding the project's cancellation. The project will be operational in the next couple of months.

Also, the Tanzanian government has reaffirmed its commitment to its agreements with Adani Ports, as it feels that there are no concerns regarding the ongoing projects and that all contracts fully comply with Tanzanian law.

In May 2024, Tanzania and Adani Ports finalised a 30-year concession agreement to operate Container Terminal 2 at Dar es Salaam port.

Additionally, Adani Ports acquired a 95% stake in Tanzania International Container Terminal Services, a state-owned entity, for $95 million.

(With Inputs From PTI.)