Mumbai airport raises $750 mn from Apollo

Mumbai International Airport Ltd (MIAL) that runs Chhatrapati Shivaji Maharaj International Airport (CSMIA) raised $750 million senior secured private placement notes from Apollo-managed credit funds.  

Majority of the proceeds from the 7.25-years $750 million notes will be used by MIAL to refinance existing shorter maturity loans and new capital expenditure.  

Apollo Partner and Global Head of Emerging Market Debt Brigitte Posch said, “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. 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 said they are all set to transform Mumbai airport from a functional transit point into a vibrant full-fledged business, hospitality and leisure ecosystem for Mumbaikars and the region. “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 said. 

Airport infrastructure company Adani Airport Holdings Ltd (AAHL) said MIAL is a strategic asset in their portfolio, and this issuance is the first step in its capital management plan. In a BSE filing, AAHL said that it will continue to diversify the sources of financing through access to different pools of capital. 

The Mumbai airport is one of the world’s busiest and the second largest airport in the country. It is amid the eight airport assets under AAHL. MIAL also owns 74 per cent stake in the greenfield Navi Mumbai International Airport Limited (NMIAL), which is under development in suburban Mumbai, and will act as a ‘twin airport’ when functional. 

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

Also read: Delhi airport now the second busiest airport in the world: OAG