Mumbai International Airport raises $ 750m from Apollo in one of the largest-ever private placements in India

Mumbai, May 4, 2022

Mumbai International Airport Ltd (MIAL), which owns and operates the Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, the second largest airport in India, has successfully raised US$ 750 million senior secured private placement notes from Apollo-managed credit funds.

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, $750 million notes to be used to refinance existing shorter maturity loans and new capital expenditure, a press release from the company said.

MIAL is managed by Adani Airport Holdings Limited (AAHL), a subsidiary of Adani Enterprises, the flagship company of the globally diversified Adani Portfolio.

MIAL is an iconic asset within AAHL’s expanding airport infrastructure portfolio and the marquee private placement is among the largest-ever completed in India, the release said.

“We are pleased to work with the Adanis to provide a comprehensive, long-term capital solution for the Mumbai International Airport, a mission-critical infrastructure asset in India,” said Brigitte Posch, Apollo Partner and Global Head of Emerging Market Debt. “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.”

“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,” said Prakash Tulsiani, CEO, MIAL. “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.”

This issuance by MIAL, which is a strategic asset in the AAHL portfolio of airports, marks the first step in its capital management plan. AAHL will continue to diversify the sources of financing through access to different pools of capital, the release said.

CSMIA has a rich history of over 90 years and has been a gateway to Mumbai for the rest of India and the world. It is one of the world’s busiest single-runway airports and the second largest airport in the country. It forms a part of an airport network of eight airport assets under Adani Airport Holdings Limited (AAHL).

MIAL also owns 74% stake in Navi Mumbai International Airport Limited (NMIAL), the greenfield airport being developed in suburban Mumbai, which when operational will be the “twin airport” servicing passengers in the Mumbai Metropolitan Region. Recently, NMIAL announced financial closure of the entire debt requirement of INR 12,770 crore with State Bank of India.

"MIAL 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, conversion to LED lamps and more. The airport has deployed a 100% single-use plastic free philosophy and zero water discharge through a sustainable water management system. Recently, Terminal 2 has been re-certified with IGBC Platinum rating in IGBC Green Existing Building Operation and Maintenance Category by Confederation of Indian Industries," the release said.

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.

MIAL is a Public-Private Partnership (PPP) venture between AAHL, holding a majority stake of 74%, and the Airports Authority of India, holding the remaining 26%.

"AAHL aims to converge India’s biggest cities in a hub and spoke model through the Group's proven strength in developing and managing complex transport & logistics hubs.

"With a strong understanding of modern-day mobility requirements, the Adani Portfolio’s vision for MIAL is to reinvent Mumbai International Airport as India’s biggest aerotropolis, where the traditional airport nucleus of passenger and cargo infrastructure will be reinforced by interdependent clusters of commercial and residential infrastructure to create the nation's busiest airport ecosystem.

"MIAL has been further envisioned as a global air-travel focal point where domestic and international flyers actively engage in business and leisure supported by metropolitan expansion that catalyses aviation-linked businesses and employment opportunities. At MIAL, we intend to create distinctiveness with an experiential offering that puts Mumbai first," the release said.

AAHL was incorporated in 2019 as a 100% subsidiary of Adani Enterprises Ltd.

"In line with its vision to be the global leader in integrated infrastructure and transport logistics, the Adani Group made its maiden venture into the airports sector by emerging as the highest bidder for the operation, management and development of six airports: Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati & Thiruvananthapuram, and signing concession agreements with the Airport Authority of India for all six airports.

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

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