MIAL-Adani Enterprises
Adani's Mumbai International Airport raises USD 750 mn from Apollo
Mumbai/UNI: Billionaire Gautam Adani led Adani Enterprises on Wednesday said the Mumbai International Airport, which owns and operates the Chhatrapati Shivaji Maharaj International Airport (CSMIA), has raised USD 750 million from Apollo-managed credit funds.
AEL said the Mumbai International Airport, a subsidiary of the company, has raised USD 750 million by way of US dollar denominated senior secured fixed rate bonds with tenure of 7.25 years, making it one of the largest-ever private placements in India.
"MIAL is an iconic asset within Adani Airport Holdings' (AAHL) expanding airport infrastructure portfolio and the marquee private placement is among the largest-ever completed in India," it said in a statement.
The proceeds of the funds raised would be used for refinancing of existing debt and for new capital expenditure requirements, the company said.
Apollo Partner and Global Head of Emerging Market Debt, Brigitte Posch, said, “We are pleased to work with Adani to provide a comprehensive, long-term capital solution for the Mumbai International Airport, a mission-critical infrastructure asset in India.”
He further said amid significant market volatility, the 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.
Commenting on the development, Prakash Tulsiani, CEO for MIAL said, "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.”
He further said 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.
The company noted that the issuance by MIAL marks the first step in its capital management plan.
"AAHL will continue to diversify the sources of financing through access to different pools of capital," the company said.
MIAL also owns 74 percent stake in Navi Mumbai International Airport (NMIAL), the greenfield airport being developed in suburban Mumbai, which when operational will be the “twin airport” servicing passengers in the Mumbai Metropolitan Region.
"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.
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