Founded in 2000, Singapore-based Adani Global Pte Ltd trades in coal and power. The company operates as a subsidiary of Mauritius-based Adani Global Ltd, a part of India’s Adani Enterprises Ltd.
“EDC, in partnership with another international bank, provided a direct loan to the Adani Group with the purpose of creating opportunities for Canadian companies in Adani’s projects in India. More specifically, EDC’s loan facilitated the purchase of solar panels from Canadian Solar, a Canadian clean technology company that provides turn-key solar energy solutions,” Sandeep Bhatt, EDC’s senior regional manager, India told DEALSTREETASIA in an email response.
EDC, Canada’s leading financier and insurer of exporting companies, has been providing loans to Indian companies for a long time. EDC actively started investing in India in 2005, while it has been present in the market for the last three decades.
In April, it supported Reliance Industries Ltd with a loan of up to $75 million. RIL has over a 10 years of relationship with EDC – RIL benefits from global source of financing and EDC introduces Canadian companies to RIL which has been doing a regular business with Canadian companies since 2010. Last year too, RIL took upto CAD$100 million from EDC while in 2015 and 2014, it had got loans to the tune of CAD$100 million and CAD$500 million respectively.
EDC had also provided a loan of up to $250 million to Tata Group’s Tata Communications Ltd in December last year.
An email query sent to spokespersons of Adani Global for a comment, did not elicit a response at the time of publishing this article.
EDC’s other recent investments in Indian companies include Idea Cellular, Ultratech Cement, Kuantum Papers, Essenlife Biosciences, Bharat Petroleum, Indian Oil, Bhira Investments among others.
Till November 2016, it has invested in more than 30 companies in India and provided around $1 billion to facilitate business between the two countries in 2015.
Last week, according to media reports, Reliance Communications is reworking on its deal to sell $1.7 billion stake in tower assets to Canada’s Brookfield after scrapping a proposed merger of its wireless arm with smaller rival Aircel.