On Tuesday, Adani Airports Holdings Limited (AAHL) announced that it has successfully obtained $1 billion in funding for its Mumbai International Airport Ltd (MIAL) using a project finance framework.
As part of the deal, $750 million notes that mature in July 2029 would be issued and utilized for refinancing.
The funding plan also provides for the raising of an extra $250 million, for a $1 billion finance total.
This framework will give MIAL, the largest private airport operator in India and a wholly-owned subsidiary of Adani Enterprises Ltd, more financial flexibility for its capital expenditure program for development, modernization, and capacity enhancement, the firm said.
This issue comes after AAHL just received $750 million in funding from a group of international banks. This most recent deal is another evidence of Adani’s capacity to draw top-tier investors to India’s next-generation infrastructure platform and its access to diverse international finance markets.
The CEO of Adani Airports Holdings Ltd., Arun Bansal, stated, “This successful issuance validates the strength of the Adani Airports’ operating platform, the robust fundamentals of Mumbai International Airport, and our commitment to sustainable infrastructure development.”
We are pleased to expand our access to international capital pools with the help of Apollo-managed funds and top institutional investors. Our dedication to capital efficiency, long-term wealth creation, and financial discipline is demonstrated by our ability to get one of the biggest private investment-grade project finance issuances,” he continued.
This is the first private bond offering in India’s airport infrastructure sector to receive an investment grade (IG) rating.
The deal, which was spearheaded by Apollo-managed funds and involved a syndicate of top institutional investors and insurance firms, including Standard Chartered and BlackRock-managed funds, demonstrated international trust in India’s infrastructure potential and Adani Airports’ operational framework.
The notes are anticipated to be rated BBB-/stable, supported by MIAL’s steady cash flows, asset base, and operational efficiency.
Through ongoing investments in modernization, capacity development, digitization, and technology integration, AAHL stated that it is still dedicated to a long-term objective of modernizing the airport’s infrastructure.
Additionally, by accelerating its sustainability program, the deal will help MIAL reach its 2029 net zero emissions target.
In 2019, AAHL was established as a fully owned subsidiary of Adani Enterprises Ltd., the Adani Group’s principal business.
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