Adani-owned Mumbai International Airport raises $750 mn

MUMBAI: Mumbai International Airport Ltd (MIAL), which owns and operates the Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, the second-largest airport in India, has raised $750 million of debt in a private placement from American private capital fund manager Apollo, it said on Wednesday.

Apollo’s Credit business was able to provide a scaled, longterm capital solution for the company and that the majority of proceeds from the 7.25-years $750 million notes will be used to refinance existing shorter maturity loans and new capital expenditure, MIAL said.

“We are pleased to work with the Adanis to provide a comprehensive, long-term capital solution for the Mumbai International Airport, a mission-critical infrastructure asset in India,” said Brigitte Posch, Apollo partner and global head of emerging market debt. “Amid significant market volatility, our ability to commit to the entire transaction and take a long-term view reflects some of the key strengths of Apollo’s global credit platform and perpetual capital base,” Posch said.

This issuance by MIAL, which is a strategic asset in Adani Airport Holdings Ltd, marks the first step in its capital management plan, the company said.

Adani Airport Holdings will continue to diversify the sources of financing through access to different pools of capital. CSMIA has a history of more than 90 years and has been a gateway to Mumbai for the rest of India and the world.

It is one of the world’s busiest single-runway airports and is a part of a network of eight airport assets under Adani Airport Holdings.

MIAL also owns 74% stake in Navi Mumbai International Airport Limited, the greenfield airport being developed in suburban Mumbai, which when operational will be the “twin airport” servicing passengers in the Mumbai Metropolitan Region. Recently, the Navi Mumbai airport announced financial closure of the entire debt requirement of Rs12,770 crore with State Bank of India.

“We are set to transform the Mumbai airport from a functional transit point into a vibrant, full-fledged business, hospitality and leisure ecosystem for Mumbaikars and the region,” said Prakash Tulsiani, chief executive officer, MIAL.

“Combined with the Adani portfolio’s proven speed of execution, the proceeds of this issuance will allow us to accelerate MIAL’s transformation and provide immense value to our stakeholders in the post-pandemic period and thereby improve the consumer experience,” according to Tulsiani.

Allen and Overy and Cyril Amarchand Mangaldass acted as legal advisors to MIAL for the issuance, while Linklaters and Talvar Thakore and Associates acted as legal advisors to Apollo.