U.S.-based global asset management giant BlackRock has emerged as the largest investor in a $750 million private bond issuance by the Adani Group, marking a significant development in the Indian conglomerate’s international financing efforts, informed sources said Thursday.
This move is particularly notable as it represents BlackRock’s first private placement in India’s infrastructure sector, underlining growing global confidence in the Adani Group’s long-term strategy—despite ongoing legal scrutiny in the United States.
According to people familiar with the matter, BlackRock, which manages over $12 trillion in assets globally, is said to have taken up one-third of the total issuance, which carries a tenure of three to five years. The bond has been issued by Renew Exim DMCC, a wholly-owned offshore entity of the Adani Group promoter family.
Funding Key Acquisitions and Growth
Proceeds from the bond will reportedly be used to finance the acquisition of ITD Cementation and support other growth initiatives. The Adani Group announced its acquisition of a 46.64% stake in ITD Cementation last year for ₹5,888.57 crore, and later acquired an additional 20.81% through an open offer at ₹400 per share.
ITD Cementation is known for its work on critical infrastructure projects, including the Jawaharlal Nehru Port Trust and major ports in Tuticorin, Mundra, and Vizhinjam, positioning it as a strategic addition to Adani’s infrastructure portfolio.
A Vote of Confidence Amid Scrutiny
The deal comes at a time when the Adani Group has been under international scrutiny, particularly due to an ongoing U.S. Department of Justice (DOJ) investigation. Despite this, BlackRock’s significant investment is being viewed as a strong vote of confidence in the conglomerate’s operations and resilience.
“This move indicates that BlackRock does not anticipate any major operational disruptions for the Adani Group stemming from the DOJ’s legal proceedings,” a source close to the matter said, as per IANS.
In addition to BlackRock, five other institutional investors also participated in the capital raise, further broadening the investor base and support for the Group.
Strategic Long-Term Bet on Infrastructure
Commenting on the potential of infrastructure as a sector, BlackRock Chairman Larry Fink recently stated, “Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts re-shape the global economy.”
This marks Adani Group’s second private dollar bond issuance. In February, it raised approximately $200 million to fund its Australian port operations.
As the Adani Group continues to expand its global footprint, the partnership with BlackRock reinforces the company’s strategy of tapping into deep-pocketed global investors to fund long-term infrastructure growth.
