Qatar Investment Authority buys 25.1% stake in Adani Electricity Mumbai

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State-owned Qatar Investment Authority (QIA) has completed acquisition of 25.10% stake in Adani Transmission Limited’s arm Adani Electricity Mumbai Limited (AEML). As part of the transaction, it has also extended a loan to AEML.

The total QIA investment in AEML is approximately Rs 3220 crore (approximately US$ 452 million), which includes equity consideration of approximately Rs 1210 crore (approximately US$ 170 million) and shareholder subordinated debt of Rs 2010 crore (US$ 282 million).

The definitive agreements for the transaction were signed on December 11 last year, and all the requisite approvals were received subsequently.

Under the transaction, Adani Transmission Ltd (the parent of AEML) and QIA have agreed definitive plans to ensure that over 30% of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023. In addition, ATL and QIA have agreed on a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy.

AEML recently completed an investment grade, US$ 1 billion bond issuance, the first by a private integrated utility from India. The issue generated significant interest from international investors and was oversubscribed by 5.9 times.

AEML is an integrated power generation, transmission and retail electricity distribution business that serves over 3 million consumers in Mumbai. In Mumbai it commands a market share of around 87% by license area, 67%

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