Synopsis
BlackRock has emerged as the largest investor in Adani Group's $750 million bond issuance, marking its first foray into India's infrastructure sector. This investment signifies confidence in Adani amid ongoing legal scrutiny in the US.Key Takeaways
- BlackRock is the largest investor in Adani's $750 million bond issue.
- This is BlackRock's first private placement in India's infrastructure.
- The bond issuance has a tenure of 3-5 years.
- BlackRock manages assets worth $12 trillion.
- The funds will help finance the acquisition of ITD Cementation.
New Delhi, April 10 (NationPress) The prominent US asset management firm BlackRock has positioned itself as the largest investor in the $750 million private bond issuance by the Indian industrial giant Adani Group, according to insider information shared on Thursday.
Sources indicate that this transaction represents BlackRock's inaugural private placement within India's infrastructure sector. Additionally, BlackRock's engagement suggests a lack of foresight regarding any substantial operational interruptions for the conglomerate due to ongoing legal challenges in the US.
Overseeing $12 trillion in global assets, BlackRock is believed to have acquired one-third of the $750 million issuance, which spans a duration of 3-5 years.
In addition to BlackRock, five other institutional investors also took part in the latest capital expansion initiated by the Adani Group.
As reported, the $750 million bond offering by Renew Exim DMCC, a fully-owned offshore subsidiary of the Adani Group's founding family, is designated for financing the acquisition of ITD Cementation and other growth initiatives.
To enhance its engineering prowess in the infrastructure domain, the Adani Group announced last year its acquisition of a 46.64 percent stake in ITD Cementation for Rs 5,888.57 crore from its promoters.
Renew Exim has also secured an additional 20.81 percent stake through an open offer priced at Rs 400 per share.
Known for its involvement in significant projects like the Jawaharlal Nehru Port Trust and ports in Tuticorin, Mundra, and Vizhinjam, ITD Cementation is regarded as a vital asset for Adani's long-term infrastructure goals.
Larry Fink, Chairman of BlackRock, stated, "Infrastructure is among the most compelling long-term investment opportunities, as various structural shifts are reshaping the global economy."
The Adani Group perceives the backing of the world's largest investor as a robust affirmation of confidence, especially amidst scrutiny of its fundraising capabilities due to the ongoing Department of Justice (DOJ) investigation in the US.
This event marks the Adani Group's second issuance of private dollar bonds, having previously raised around $200 million for its Australian port ventures in February.
