Adani Group raises $1 bn to refinance existing debt for Mumbai Int’l Airport
New Delhi: Adani Group has raised $1 billion from global investors led by New York-based Apollo Global Management to refinance existing debt for its Mumbai airport.
Mumbai International Airport Ltd (MIAL), a unit which operates India’s second largest airport, will use the proceeds to refinance debt raised in 2022, it said in a statement.
“The transaction involves issuance of $750 million notes maturing July 2029 which shall be used for refinancing. The financing structure also includes provision to raise an additional $250 million, resulting in total financing of $1 billion,” the group said.
This, it said, will provide enhanced financial flexibility for the capital expenditure program of MIAL for development, modernisation, and capacity enhancement. The bonds will offer about 6.9 per cent over the four-year tenor.
MIAL is managed by Adani Airport Holdings Ltd (AAHL), a subsidiary of group’s flagship firm Adani Enterprises Ltd. AAHL holds 74 per cent stake in MIAL and the remaining 26 per cent is held by Airports Authority of India.
Besides Apollo, other lenders include Metlife Inc, BlackRock Inc and Hong Kong-based FWD
Insurance. “This is India’s first investment grade (IG) rated private bond issuance in the airport infrastructure sector,” the statement said.
“The transaction was led by Apollo-managed funds, with participation from a syndicate of leading institutional investors and insurance companies which included BlackRock-managed funds, Standard Chartered among others, underlining global confidence in India’s infrastructure opportunity and Adani Airports’ operating platform,” it added.
With eight airports in its management and development portfolio, AAHL is India’s largest airport infrastructure company, accounting for 23 per cent of passenger footfalls and 30 per cent of India’s air cargo traffic.
AAHL also holds 74 per cent in Mumbai International Airport Ltd, which in turn holds 74 per cent in Navi Mumbai International Airport Ltd.