Mumbai Airport raises $750 mn from Apollo to refinance exiting debt

NEW DELHI: Adani Airport’s flagship Mumbai International Airport Ltd (MIAL) has raised $750 million from Apollo-managed credit funds which will be used to refinance existing debt and for new capital expenditure requirements. This is the first step capital management plan of Adani Airport Holdings Ltd (AAHL), a company incubated by Adani Enterprises Ltd (AEL), along with the recently announced financial closure of Navi Mumbai Airport.

AAHL says it will continue to diversify the sources of financing through access to different pools of capital. “We are pleased to work with the Adani’s to provide a comprehensive, long-term capital solution for the Mumbai International Airport, a mission-critical infrastructure asset in India. 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,” said Brigitte Posch, Apollo partner and global head of emerging market debt.

MIAL CEO Prakash Tulsiani 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. 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.”

MIAL, which owns and operates Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) and will build the Navi Mumbai Airport, has raised $750 million senior secured private placement notes from Apollo-managed credit funds.

“Apollo’s Credit business was able to provide a scaled, long-term capital solution for MIAL, with the majority of proceeds from the 7.25-years, $750 million notes to be used to refinance existing shorter maturity loans and new capital expenditure. MIAL is an iconic asset within AAHL’s expanding airport infrastructure portfolio and the marquee private placement is among the largest-ever completed in India,” the Adani group said in a statement.

CSMIA forms a part of an airport network of eight airport assets under AAHL. MIAL also owns 74% stake in Navi Mumbai International Airport Limited (NMIAL). Recently, NMIAL had announced financial closure of the entire debt requirement of Rs 12,770 Cr with SBI.