- BlackRock invested heavily in Adani Group’s $750 million bond, buying one third to support the purchase of ITD Cementation.
- The bond sale, joined by five other US and European investors, aims to fund his infrastructure growth despite a US bribery investigation.
- Adani Group sees BlackRock’s investment as a sign of confidence, choosing a private bond sale due to ongoing legal issues.
BlackRock, one of the largest US investment firms, has emerged as the biggest investor in a $750 million bond from India’s Adani Group. The bond proceeds will be used to acquire ITD Cementation, a construction firm, and support broader infrastructure expansion plans.
BlackRock purchased approximately one third of the bond, which has a three to five year tenure. This is BlackRock’s first investment in India’s infrastructure sector, showing its trust in Adani Group’s future even with the ongoing legal issues in the US.
BlackRock chairman Larry Fink said, “infrastructure is an excellent long term investment opportunity.”
Adani Group’s Bond for Growth
The Adani Group raised this funds through Renew Exim, an entity it owns fully, located outside India. Five other investors, primarily from the US and Europe, also participated in the bond sale, including Sona Asset Management. The funds will help his Group complete its purchase of ITD Cementation.
Last year, his Group bought a 46.64% stake in ITD Cementation for Rs 5,888.57 crore and later added a 20.81% stake through an open offer at Rs 400 per share.
ITD Cementation is involved in major projects such as the Jawaharlal Nehru Port Trust and important ports in Tuticorin, Mundra, and Vizhinjam, playing a crucial role in his infrastructure plans.
Under Legal Examination
The recent bond sale is a big step for the Adani Group, particularly as the company is already being investigated by the U.S. Department of Justice.
In November 2024, US authorities charged Gautam Adani and others with bribery on solar energy projects. Despite such charges, BlackRock’s investment indicates that it does not anticipate important issues for his Group’s operations. Adani Group describes the allegations as unfounded and regards BlackRock’s backing as a strong indication of confidence.
This is Adani Group’s second private bond sale in recent times. In February, it raised $200 million for its Australian port business. The group chose a private bond sale instead of a public one due to legal uncertainty.
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