Adani Airport Holdings raises $ 250 million for airports development

Ahmedabad, May 9, 2022

Adani Airport Holdings Ltd (AAHL), a wholly-owned subsidiary of Adani Enterprises Ltd, today announced the successful closure of funding of $ 250 million senior secured 3-year ECB facility from a consortium of Standard Chartered Bank (SCB) and Barclays Bank PLC.

The facility has an option to raise additional $ 200 million, a press release from the company said.

"The financing structure enables a scalable capital solution with flexibility to tap global capital markets in line with AAHL’s vision of providing a transformational airport infrastructure platform," the release said.

The funds raised will be used for capital expenditure and development of six airports, it said.

AAHL is leading the Adani portfolio’s foray into B2C infrastructure assets. "AAHL business is centred around convenience to consumer both via physical and digital channels," the release said.

“We are focussed on delivering high quality infrastructure access to our consumers both through physical and digital channels,” said a spokesperson for AAHL. “The first phase of our capital management plan is now set in motion with the funding of AAHL, MIAL and NMIAL, and we will now focus on scaling up the airports business into one of the largest airport platforms globally. We are grateful to our stakeholders and consumers for their continued support and their confidence in us.”

This issuance by AAHL, marks the first milestone in its capital management plan. Earlier this month, Mumbai International Airport Limited (MIAL) placed $ 750 milllion private placement to Apollo. The company has also achieved $ 1.74 bilion financial closure for Navi Mumbai International Airport Limited (NMIAL) from the domestic banking system.

"With this, AAHL has tapped three different pools of capital cumulating to $ 2.74 billion. AAHL is now geared for the next phase of its capital management plan which includes tapping the public capital markets and further construction facilities to enable access to long term capital sources for infrastructure development," the release said.

AAHL is an integrated airport network consisting of eight airports located around city centres controlling about 50% of top 10 domestic routes, about 23% of the total Indian air traffic, and about 30% of India’s air cargo. AAHL airports handle around 200 million consumers, including passengers and non-passengers.

"AAHL 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, green buildings, conversion to LED lamps etc.," the release said.

AAHL was incorporated in 2019 as a 100% subsidiary of Adani Enterprises Ltd, the flagship company of the Adani Group.

In its maiden venture into the airports sector, the company had emerged as the the highest bidder for the operation, management and development of six airports: Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram. It has signed concession agreements with the Airport Authority of India (AAI) for all six airports.

AAHL also holds 74% in Mumbai International Airport Ltd, which in turn holds 74% in Navi Mumbai International Airport Ltd.

"With eight airports in its management and development portfolio, AAHL is India's largest airport infrastructure company," the release added.

NNN