New Delhi– BlackRock, the U.S.-based global asset management giant, has emerged as the largest investor in a $750 million private bond issuance by India’s Adani Group, according to informed sources.
This marks BlackRock’s first private placement in India’s infrastructure sector, signaling its confidence in the conglomerate despite ongoing legal proceedings involving the company in the United States. The move also indicates that BlackRock does not foresee any major operational disruptions for Adani stemming from the U.S. Department of Justice investigation.
With over $12 trillion in assets under management, BlackRock is reported to have subscribed to approximately one-third of the $750 million issuance, which carries a tenure of three to five years.
In addition to BlackRock, five other institutional investors participated in the fundraising round.
The bond was issued by Renew Exim DMCC, a wholly owned offshore entity of the Adani Group’s promoter family. Proceeds from the issuance will be used to fund the acquisition of ITD Cementation and support other growth initiatives.
As part of its strategy to enhance engineering capabilities in the infrastructure space, Adani Group last year announced the acquisition of a 46.64% stake in ITD Cementation for ₹5,888.57 crore. Since then, Renew Exim has acquired an additional 20.81% through an open offer at ₹400 per share.
ITD Cementation, recognized for its work on major infrastructure projects such as the Jawaharlal Nehru Port Trust and ports in Tuticorin, Mundra, and Vizhinjam, is viewed as a key asset for Adani’s long-term infrastructure goals.
“Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts reshape the global economy,” said BlackRock Chairman Larry Fink.
Adani Group sees BlackRock’s investment as a major vote of confidence, particularly at a time when its fundraising capabilities have come under scrutiny due to the ongoing DOJ probe.
This is the Adani Group’s second private U.S. dollar bond issuance. In February, the conglomerate raised approximately $200 million to support its Australian port operations. (Source: IANS)
