Adani Airports Raises $1 Billion for Mumbai Airport Modernization and Expansion
Adani Airports Holdings Limited (AAHL), a subsidiary of Adani Enterprises and the leading private airport operator in India, has successfully secured USD 1 billion to aid the expansion and modernization of Mumbai International Airport Ltd. (MIAL). The financing package comprises USD 750 million in notes due in July 2029, with an option for an additional USD 250 million, aimed at refinancing existing debt and supporting future capital expenditure plans.
This marks the first investment-grade rated private bond issuance in India's airport infrastructure sector, highlighting growing international confidence in India's infrastructure capabilities and the robustness of Adani's airport operations. The transaction was spearheaded by funds managed by Apollo, with significant participation from institutional investors like BlackRock-managed funds and Standard Chartered.
Supported by the stable asset base and dependable cash flow of MIAL, the notes are anticipated to achieve a BBB-/stable rating. According to AAHL, the financial structure offers the necessary flexibility to advance development and capacity enhancement projects at Mumbai's principal aviation hub.
The funding will not only aid modernization, digitization, and capacity enhancements but also help MIAL in its pursuit to achieve net-zero emissions by 2029, in line with global sustainability trends.
Arun Bansal, CEO of Adani Airports Holdings Ltd., stated, “This successful issuance underlines the strength of the Adani Airports' operating platform, the solid fundamentals of Mumbai International Airport, and our dedication to sustainable infrastructure development.”
Legal advisory for MIAL was provided by Allen & Overy, Shearman & Sterling, and Cyril Amarchand Mangaldas, while Milbank LLP and Khaitan & Co. represented the investors. This transaction follows AAHL's previous $750 million fundraising from global banks, further solidifying Adani's ability to access international capital markets to support infrastructure growth in India.
