Adani Group achieves financial closure of Navi Mumbai International Airport project

Adani Group achieves financial closure of Navi Mumbai International Airport project

Mumbai, March 29, 2022

Navi Mumbai International Airport Private Ltd (NMIAL), a subsidiary of Adani Enterprises Ltd (AEL), has achieved financial closure for the greenfield international airport project at Navi Mumbai, near here, in Maharashtra with the execution of financing documents with the State Bank of India (SBI).

The SBI has underwritten the entire debt requirement of INR 12,770 crore for the NMIA Project, a press release from the Adani Group said.

“The Adani Group’s focus is to create and provide best-in-class airport infrastructure and allied services to the consumer,” said Jeet Adani, Director, NMIAL. “We aim to converge India’s biggest cities with other surrounding cities and towns in a hub and spoke model. Given the central role airports will play in the future, we intend to develop an economic ecosystem that has airports and airport users at its core. With this facility from the SBI, we have moved a step closer to providing Mumbai with another landmark utility.”

The release said the achievement of financial closure signified the commitment of the Adani Group to mobilise the required resources and complete, within the set timelines, the NMIA Project which was taken over pursuant to the acquisition of Mumbai International Airport Ltd (MIAL) by the Group through Adani Airport Holdings Ltd (AAHL), in July 2021.

SBI Capital Markets Ltd acted as the financial advisor to the SBI and Saraf & Partners Law Offices acted as the Lenders’ Legal Counsel. Cyril Amarchand Mangaldas acted as the legal advisor to NMIAL.

NMIAL is a special purpose vehicle established for the development, construction, operation and maintenance of the greenfield international airport project at Navi Mumbai, Maharashtra, on a Design, Build, Finance, Operate and Transfer (DBFOT) basis.

NMIAL is owned by Mumbai International Airport Limited (74% shareholding) and City and Industrial Development Corporation of Maharashtra Limited (CIDCO) (26% shareholding).

CIDCO, a Government of Maharashtra undertaking is also the Concessioning Authority for the project.

The project is proposed to be developed in multiple phases having an ultimate capacity of 60 million passengers per annum (MPPA). In the initial phase, NMIAL is implementing passenger capacity of 20 MPPA and 800,000 tons per annum of cargo handling capacity, expected to be completed by December 2024.

Adani Group made its maiden venture into the airports sector by emerging as the highest bidder for the operation, management & development of six airports -- Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati & Thiruvananthapuram -- and signed the Concession Agreement (CA) for all six airports with Airports Authority of India (AAI).

Out of six CAs already signed, Adani Group has already taken over the operation and management of three airports, Ahmedabad, Lucknow and Mangaluru.

To hold the entire airport business of the group, AAHL was incorporated on August 2, 2019, as a 100% unlisted subsidiary of Adani Enterprises Limited, the flagship company of the group. AAHL holds 73% in Mumbai International Airport Private Limited, which in turn holds 74% in NMIAL.

With eight airports in its management and development portfolio, AAHL is now India's largest airport infrastructure company, accounting for 25% of airport footfalls and controlling 33% of India’s air cargo traffic.

NNN

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