New Delhi– U.S.-based asset management firm BlackRock has emerged as the largest investor in a $750 million private bond issuance by the Indian conglomerate Adani Group, according to sources familiar with the matter.
This investment marks BlackRock’s first private placement in India’s infrastructure sector. The firm’s participation indicates confidence in the Adani Group’s operational stability despite ongoing legal proceedings involving the group in the United States.
BlackRock, which manages approximately $12 trillion in global assets, is reported to have subscribed to 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 latest fundraising round.
The bond issuance was made through Renew Exim DMCC, a wholly owned offshore entity of the Adani Group’s promoter family. The proceeds are expected to finance the acquisition of ITD Cementation and support other growth initiatives.
In a strategic move to strengthen its engineering capabilities within the infrastructure sector, the Adani Group announced the acquisition of a 46.64% stake in ITD Cementation last year for ₹5,888.57 crore from the company’s promoters.
Renew Exim has since increased its holding by an additional 20.81% through an open offer at ₹400 per share.
ITD Cementation is recognized for its role in major infrastructure projects, including those at Jawaharlal Nehru Port Trust and the ports of Tuticorin, Mundra, and Vizhinjam. The acquisition is viewed as a critical step in advancing Adani’s long-term infrastructure goals.
Commenting on infrastructure as an investment class, BlackRock Chairman Larry Fink stated, “Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts reshape the global economy.”
The Adani Group considers BlackRock’s participation as a significant vote of confidence, particularly in light of the scrutiny it faces due to an ongoing U.S. Department of Justice investigation.
This transaction marks the Adani Group’s second private dollar bond issuance. In February, the group raised approximately $200 million for its Australian port operations. (Source: IANS)
