BlackRock backs Adani’s $750 million bond to fund an acquisition

Adani Group raised about $750 million through an offshore private placement bond, according to people familiar with the matter. BlackRock Inc. subscribed to roughly a third as the Indian conglomerate sought funds to close the acquisition of a construction firm.

A group of international investors including BlackRock participated in the new bond issuance to support the acquisition of ITD Cementation India Ltd by Dubai-based Renew Exim DMCC, the Adani Group said Wednesday in a statement. The statement didn’t elaborate on details of the bond or disclose any of the other investors. 

BlackRock subscribed to about $250 million of Adani Group’s private placement of bonds in the offshore market, said the people, who asked not to be identified as the information is private. The tenor of the bonds is between three to five years, the people said. 

Representatives of Adani Group and BlackRock declined to comment.

Last year, Renew agreed to buy ITD Cementation’s stake from Thailand’s largest contractor for 32 billion rupees. Adani Group said Renew Exim has successfully completed an open offer as a precursor to the acquisition. 

The Adani Group received a loan for its coal port unit in Australia earlier this year. The latest borrowing is nearly four times as large, signaling growing comfort among global investors toward the ports-to-power conglomerate. The fundraising would be the firm’s biggest since the U.S. Department of Justice indicted Adani over an alleged bribery plot in November.