Apollo Global Management has led a $750-million financing round for the Adani Group-controlled Mumbai International Airport Ltd (MIAL), as global alternative investment firms continue to seal large private credit transactions in India.
The airport operator will use the four-year senior secured notes primarily to refinance existing debt, Apollo Global said in a statement. The deal includes an additional $250 million for capital expenditure, the US-based firm said.
The transaction adds to the growing number of large private credit deals in India. Earlier this month, KKR said it provided $600 million to Manipal Group in its largest private credit deal in India. Last month, Shapoorji Pallonji Group raised about $3.4 billion in private credit from investors including BlackRock, Pimco, and Ares Management.
MIAL, which operates the Chhatrapati Shivaji Maharaj International Airport in Mumbai, is a subsidiary of Adani Airports Holdings Ltd. Adani Airports holds a 74% stake in MIAL, with the Airports Authority of India owning the remaining 26%. The wholly owned unit of Adani Enterprises Ltd is India’s largest airport operator and manages eight airports.
Apollo said this marks the first investment-grade private bond issuance in the Indian aviation sector and one of the largest private investment-grade rated deals in India’s infrastructure sector.
“This marks Apollo’s second large financing for MIAL, having previously provided operational flexibility to deleverage and now delivering an investment-grade rated solution,” said Apollo partner Jamshid Ehsani.
Separately, Adani Airports said in a statement that the transaction is backed by a group of global banks and institutional investors including BlackRock-managed funds and Standard Chartered. It added that the debt investment will help fund modernization, capacity expansion, and sustainability efforts. Arun Bansal, CEO at Adani Airports, described the deal as a reflection of the company’s operational capabilities and commitment to sustainability.
The Mumbai airport is India’s second-busiest airport. It recorded 25.8 million passengers in the last fiscal year, accounting for 23% of the nation’s passenger traffic and 30% of its air cargo.
Allen & Overy LLP and Cyril Amarchand Mangaldass served as legal counsel to MIAL. Milbank LLP and Khaitan & Co served as legal counsel to Apollo for this transaction.
