Mumbai International Airport Ltd (MIAL), which owns and operates the Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, said it has raised ₹5,735.43 crore (US$ 750 million) senior secured private placement notes from Apollo Management International LLP-managed credit funds.
The US-based Apollo is a global, high-growth alternative asset manager.
Apollo’s Credit business provided the funds and majority of proceeds will be used to refinance existing shorter maturity loans and new capital expenditure, the company said in a statement.
This private placement is among the largest-ever completed in India, the company said.
MIAL is a step-down subsidiary of Adani Airport Holdings Ltd (AAHL), a company incubated by Adani Enterprises Ltd (AEL).
The capital was raised through 7.25-year US$ Notes through US Private Placement (USPP).
The transaction marked the first step of the capital management plan of AAHL along-with recently announced financial closure of Navi Mumbai airport, the second airport of Mumbai which is being developed by the Adanis.
“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, Partner and Global Head of Emerging Market Debt, Apollo.
“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," she said.
“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," he added.
