Key Highlights

• Adani Airports raises US $750 million via unsecured notes, backed by Apollo-led global investor consortium.
• Financing, with optional additional $250 million, marks India’s first investment-grade private airport bond deal.

Adani Airports Holdings Limited (AAHL), Adani Enterprises' wholly owned subsidiary and India's largest private airport operator, has successfully raised USD 1 billion via a project finance structure for its Mumbai International Airport Ltd (MIAL).

AAdani claims that the deal entails issuing USD 750 million in notes with a maturity date of July 2029. The purpose of these notes is to refinance. Additionally, the financing framework permits the raising of an additional USD 250 million, increasing the total amount of funding available to USD 1 billion.

The structure is expected to increase MIAL's financial flexibility for capital expenditure plans such as development, modernization, and capacity expansion.

This deal is the first time investment-grade private bonds have been issued in India's airport infrastructure market.

Apollo-managed funds spearheaded the deal, with involvement from a number of significant institutional investors and insurance providers. Among them were BlackRock-managed funds and Standard Chartered, demonstrating global interest in India's infrastructure sector and trust in Adani Airports' operational capabilities.

MIAL's stable asset base, consistent cash flows, and operational capabilities are expected to support the notes' BBB-/stable rating.

According to AAHL, it is still dedicated to its long-term goal of modernizing airport infrastructure by making continuous investments in expansion, digitization, modernization, and technology advancements.

Additionally, it is anticipated that the agreement will expedite MIAL's sustainability initiatives. By 2029, the company wants to have zero net emissions.

This most recent fundraising comes after AAHL received USD 750 million in funding from a consortium of international banks. The company claims that the current deal shows Adani's capacity to reach a variety of international capital markets and draw top-tier investors to India's infrastructure industry.

"This successful issuance validates the Adani Airports operating platform, the strong fundamentals of Mumbai International Airport, and our commitment to long-term infrastructure development."With the participation of Apollo-managed funds and leading institutional investors, we are pleased to expand our access to global pools of capital," stated Adani Airports Holdings Ltd. CEO Arun Bansal.

"Our commitment to financial discipline, capital efficiency, and long-term value creation is demonstrated by our ability to secure one of the largest private investment-grade project finance issuances," he added.

Also Read: Adani Group to Develop Rs 10,000 Crore Township Near Navi Mumbai Airport 

Allen & Overy (A&O), Shearman & Sterling, and Cyril Amarchand Mangaldas, representing MIAL, served as legal advisors on the transaction. Milbank LLP and Khaitan & Co. served as the investors' counsel.