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June 13, 2024
Aviation

Mumbai International Airport Raises USD 750 Mn from Apollo

Mumbai International Airport

One of the largest-ever private placements in India

EDITOR’S SYNOPSIS

  • Mumbai International Airport Ltd (MIAL) is a step-down subsidiary of Adani Airport Holdings Ltd (AAHL), a company incubated by Adani Enterprises Ltd (AEL)
  • Raised USD 750 Mn through 7.25-year USD Notes through US Private Placement (USPP)
  • Funds raised to be used for, refinancing of existing debt and for new capital expenditure requirements
  • The transaction marked the first step of the capital management plan of AAHL along-with recently announced financial closure of Navi Mumbai airport

Mumbai International Airport Ltd (MIAL), which owns and operates the Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, the second largest airport in India has successfully raised USD 750 Mn 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.

“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,” said Brigitte Posch, Apollo Partner and Global Head of Emerging Market Debt. “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.”

Prakash Tulsiani CEO MIAL
Prakash Tulsiani, CEO, MIAL

“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. “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.”

This issuance by MIAL, which is a strategic asset in the AAHL portfolio of airports, marks the first step in its capital management plan. AAHL will continue to diversify the sources of financing through access to different pools of capital.

CSMIA has a rich history of over 90 years and has been a gateway to Mumbai for the rest of India and the world. It 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 Airport Holdings Limited (AAHL). MIAL also owns 74% stake in Navi Mumbai International Airport Limited (NMIAL), the greenfield airport being developed in Suburban Mumbai, which when operational will be the “twin airport” servicing passengers in the Mumbai Metropolitan Region. Recently, NMIAL announced financial closure of the entire debt requirement of INR 12,770 Cr with State Bank of India. 

MIAL is fully committed to the UN Sustainability Development Goals (SDGs) with a specific focus on SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities) & SDG 13 (Climate Action), demonstrated through initiatives that include solar energy installation projects, electric vehicle usage, conversion to LED lamps and more. The airport has deployed a 100% single-use plastic free philosophy and zero water discharge through a sustainable water management system. Recently, Terminal 2 has been re-certified with IGBC Platinum rating in IGBC Green Existing Building Operation and Maintenance Category by Confederation of Indian Industries.

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

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