BlackRock emerges as largest investor in Adani's $750 mn bond issue

The US-based asset manager, overseeing USD 12 trillion in assets, has taken on one-third of the USD 750 million issuance, which carries a tenure of 3-5 years, sources with direct knowledge of the matter said.

This investment comes at a time when Adani Group officials are under scrutiny following a US Department of Justice (DOJ) indictment in a bribery case in November last year.

BlackRock's move marks its first private placement in India's infrastructure sector a segment the firm is increasingly bullish on.

Aside from BlackRock, five other institutional investors -- primarily American and European also participated in the Adani Group's latest capital raise. These included funds managed by Sona Asset Management.

The USD 750 million bond issue of Renew Exim DMCC, a wholly owned offshore entity of the Adani group promoter family, is to be used to finance acquisition of ITD Cementation and other growth avenues.

The Adani Group views the entry of the world's largest investor as a strong vote of confidence, particularly at a time when its fundraising capabilities have been questioned due to the ongoing DOJ investigation.

BlackRock's involvement also signals that it does not anticipate any significant operational disruptions for the conglomerate stemming from the legal proceedings.

This marks the Adani Group's second private dollar bond issuance. In February, the group raised about USD 200 million for its Australian port operations. The latest raise -- almost four times larger -- is the most substantial since the DOJ indictment.

The USD 750 million has been raised by Renew Exim, a private group-level entity, to finance the acquisition of ITD Cementation.