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Apollo Global makes $750 mn debt investment in Adani-owned Mumbai airport

By Beena Parmar

  • 04 May 2022
Apollo Global makes $750 mn debt investment in Adani-owned Mumbai airport
Credit: Reuters

Mumbai International Airport Ltd (MIAL) Wednesday said that it has raised $750 million of debt in a private placement from US-based private asset manager, Apollo Global.

The owner and operator of the Chhatrapati Shivaji Maharaj International Airport in Mumbai, the second largest airport in India, MIAL said that the majority of proceeds raised via 7.25-year senior secured notes will be used to refinance existing shorter maturity loans and new capital expenditure, Adani Enterprises said in a regulatory filing. 

MIAL is managed by Adani Airport Holdings Limited (AAHL), a 100% subsidiary of Adani Enterprises Ltd, the flagship company of the billionaire Gautam Adani-led Group. MIAL is a public-private partnership (PPP) venture between AAHL, holding a majority stake of 74%, and the Airports Authority of India (AAI), holding the remaining 26%. 

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“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, partner and global head of emerging market debt, Apollo Global.

This issuance by MIAL, which is a strategic asset in Adani Airports Holding Ltd (AAHL), marks the first step in its capital management plan, Adani said.   

Incorporated in 2019, AAHL will continue to diversify the sources of financing through access to different pools of capital, it added.

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The Mumbai airport, with a history of over 90 years is one of the world’s busiest single-runway airports and the second largest airport in the country. It forms a part of an airport network of eight airport assets under Adani Airports Holdings (AAHL).  

MIAL also owns 74% stake in the Navi Mumbai International Airport Limited, the greenfield airport being developed in suburban Mumbai, which when operational will be the “twin airport” servicing passengers in the Mumbai Metropolitan Region. Recently, the Navi Mumbai Airport announced financial closure of the entire debt requirement of Rs 12,770 crore with State Bank of India.  

“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,” said Prakash Tulsiani, CEO, MIAL.

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“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,” he added.   

Allen and Overy and Cyril Amarchand Mangaldass acted as legal advisers to MIAL for the issuance, while Linklaters and Talvar Thakore and Associates acted as legal advisers to Apollo. 

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