MIAL said that Apollo’s Credit business was able to provide a scaled, long-term capital solution for the company and that the majority of proceeds from the 7.25-years, $750 million notes will be used to refinance existing shorter maturity loans and new capital expenditure.
“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," 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."
This issuance by MIAL, which is a strategic asset in the Adani Airports Holding Ltd (AAHL), marks the first step in its capital management plan, the company said. AAHL will continue to diversify the sources of financing through access to different pools of capital. 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. MIAL also owns 74% stake in Navi Mumbai International Airport Limited, the greenfield airport being developed in Suburban Mumbai, which when operational will be the “twin airport" servicing passengers in the Mumbai Metropolitan Region. Recently, the Navi Mumbai Airport announced financial closure of the entire debt requirement of Rs12,770 crore with State Bank of India.
“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."
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.
