Adani Enterprises said Wednesday its subsidiary Mumbai International Airport Ltd (MIAL) has raised $750 million senior secured private placement notes from global asset manager Apollo Global Management. The company said this is one of the largest private placements in India. MIAL, which runs India’s second largest airport Chhatrapati Shivaji Maharaj International Airport, said it has raised money through 7.25-year USD notes via Apollo-managed credit funds.
The majority of the money raised through the capital raise will be used to refinance existing shorter maturity loans and new capital expenditure, the company said. Shares of Adani Enterprises were down over 1 per cent in early hours of trading.
Brigitte Posch, Apollo Partner and Global Head of Emerging Market Debt, said the Mumbai International Airport is a 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,” Posch added.
MIAL plans to transform the Mumbai airport from a functional transit point into a vibrant, full-fledged business, hospitality and leisure ecosystem, the company’s chief executive Prakash Tulsiani said. “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,” Tulsiani added.
The company said it will continue to diversify the sources of financing through access to different pools of capital. Allen and Overy and Cyril Amarchand Mangaldass acted as legal advisors to MIAL for the deal, while Linklaters and Talvar Thakore and Associates acted as legal advisors to Apollo.
Chhatrapati Shivaji Maharaj International Airport, which is better called Mumbai Airport is world’s busiest single-runway airport and the second largest airport in the country. In March, the Adani Group concluded financing of its Navi Mumbai airport as the public sector lender State Bank of India underwrote the entire debt requirement of Rs 12,770 crore for the project.