BlackRock acquires one-third of Adani promoters’ $1B private bonds
In a strong show of confidence, the world’s largest asset manager BlackRock has bought close to one-third of a $1 billion private bond issue by Renew Exim, an Adani Group promoter entity. This is BlackRock’s first direct investment in any Adani company. Proceeds from this transaction will largely go towards funding the acquisition of ITD Cementation India Ltd., while the balance will fund capital expenditure plans in various Adani Group firms.
The off-market bond sale, which has a tenure of more than three years, has attracted the interest of at least five other international funds, reflecting continued international investor confidence in the Adani group. This strategic fundraising exercise comes as the Adani Group continues to face reputational issues, including recent legal issues. Importantly, the U.S. Department of Justice has made allegations of bribery, which the Adani Group has categorically denied.
Despite the controversies, the deal underscores growing investor trust in the group’s long-term growth trajectory. The infusion of funds from a globally respected firm like BlackRock strengthens Adani’s financial position, helping it pursue acquisitions and expansions while managing its debt levels. It also signals a gradual return of confidence among institutional investors following the fallout from the Hindenburg report and other regulatory hurdles.
This investment not only enhances the group’s capital base but also positions it well for future growth, especially in key infrastructure sectors. It reflects Adani’s broader strategy to attract global capital while reinforcing credibility amid challenging circumstances.
