Adani Enterprises up over 2% as arm Adani Airports secures $1 bn financing for Mumbai International Airport; check details

AAHL is India’s largest private airport operator.

The company said its airport arm has secured $1 billion in financing from global investors to fund construction of the Mumbai International Airport.

"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 and Standard Chartered, among others, underlining global confidence in India’s infrastructure opportunity and Adani Airports’ operating platform," it said in a statement.

The transaction involves the issuance of $750 million notes maturing in 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.

"This framework will provide enhanced financial flexibility for the capital expenditure programme of MIAL for development, modernisation, and capacity enhancement," the company said in a statement. This is India’s first investment-grade (IG) rated private bond issuance in the airport infrastructure sector.

About Adani Airports

Adani Group says that it forayed into civil aviation with a vision to leverage its rich experience in building stellar infrastructure to transform Indian airports. Adani Airport Holdings Ltd (AAHL) was incorporated in 2019 as a 100% subsidiary of Adani Enterprises Ltd, the flagship company of the Adani Group.

In line with its vision to be a global leader in integrated infrastructure and transport logistics, the Adani Group made its maiden venture into the airports sector. "We emerged as the highest bidder for the operation, management, and development of six airports: Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. It signed concession agreements with the Airports Authority of India for all six airports," the group website says.

AAHL also holds a 73% stake in Mumbai International Airport Ltd, which in turn holds a 74% stake in Navi Mumbai International Airport Ltd. With eight airports in its management and development portfolio, AAHL is India’s largest airport infrastructure company, accounting for 25% of passenger footfalls and 33% of India’s air cargo traffic, the website adds.