Key Abu Dhabi Fund, Sri Lanka Port Authority, Tanzanian Government Reaffirm Support For Adani Group

Abu Dhabi's International Holding Company (IHC), one of the largest sovereign funds that manages assets close to $100 billion, has reaffirmed its support to the Adani Group, saying its outlook on investments in the group remains unchanged despite the US indictment.

"Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors," IHC, one of Adani group's key foreign investors, said 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." 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 per cent stake in AGEL and 1.41 per cent in ATL, now called Adani Energy Solutions Ltd, but hiked its stake in Adani Enterprises Ltd to over 5 per cent.

The IHC statement comes soon after Adani group emphasised that its chairman and his aides have not been charged under the US Foreign Corrupt Practices Act but faced three other charges, including securities and wire fraud, that are punishable with monetary fines.

The US Department of Justice's (US DoJ) indictment filed in a New York Court last week does not mention Gautam Adani, founder chairman of the ports-to-energy conglomerate, his nephew Sagar or Vneet Jaain in any count related to conspiracy to violate the FCPA, AGEL had said in a filing to the stock exchange.

The three, who are executives at AGEL, have only been charged with securities fraud conspiracy, wire fraud conspiracy, and securities fraud, the company said. In general, the penalties for such charges are less severe than bribery.

The Adani Group last week termed 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 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 per cent stake in Tanzania International Container Terminal Services, a state-owned entity, for $95 million.

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