Mumbai Airport raises USD 750 million in debt funding from Apollo Global

Mumbai International Airport Ltd (MIAL) has raised USD 750 million via dollar-denominated bonds from credit funds managed by private equity firm Apollo, Adani Enterprises announced in a filing with indices on April 4.

MIAL owns and operates the Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, the second largest airport in India. MIAL is a step-down subsidiary of Adani Airport Holdings, a company incubated by Adani Enterprises.

Mumbai Airport raises USD 750 million in debt funding from Apollo Global

The funds are primarily meant for refinancing the airport’s short-term debt. The money has been raised in the form of senior secured private placement notes, usually used by institutional investors to lend to companies just like banks.

“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, USD 750 million notes,” MIAL said in a statement. The company will use the funds to refinance shorter maturity loans and for new capital expenditure.

MIAL is a step-down subsidiary of Adani Airport Holdings, a company incubated by Adani Enterprises.

“This issuance by MIAL marks the first step in its capital management plan. Adani Airport Holdings will continue to diversify sources of financing through access to different pools of capital,” Adani Enterprises said in the filing.

“We are pleased to work with the Adani’s to provide a comprehensive, long-term capital solution for MIAL, a mission-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.”

Brigitte Posch, Apollo Partner and Global Head of Emerging Market Debt

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.

“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.”

Prakash Tulsiani, CEO, Mumbai International Airport Ltd (MIAL)

In July 2021, Adani Group took over the operations of MIAL from GVK. In the same month, MIAL’s board approved proposals to issue and allot redeemable non-convertible debentures worth around INR 4,000 crore to banks and financial institutions — including Barclays Bank, Deutsche Bank, JP Morgan and Standard Chartered Bank.

The debentures carry a coupon rate of 10.75-12% and have a tenor of 12-25 months and are secured by a pledge from Adani Group’s 74% stake in MIAL and a charge on various assets.

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