The largest private airport operator in India, Adani Airports Holdings Limited (AAHL), a fully owned subsidiary of Adani Enterprises, has raised $ 1 billion for its Mumbai International Airport Ltd (MIAL) project finance structure.

It is anticipated that the structure will give MIAL more financial flexibility for its capital spending goals, which include capacity expansion, modernization, and development.

This transaction is the first time that India has issued investment-grade private bonds in the field of airport development.

Apollo-managed funds spearheaded the deal, with a syndicate of significant institutional investors and insurance companies also taking part.

These included Standard Chartered and BlackRock-managed funds, demonstrating the international interest in India's infrastructure industry and trust in Adani Airports' operational framework.

The notes are anticipated to receive a BBB-/stable rating because of MIAL's strong asset base, consistent cash flows, and operational capabilities.

According to AAHL, it is still dedicated to its long-term goal of modernizing airport infrastructure by making continuous investments in growth, modernization, digitization, and technology advancements.

 

Additionally, it is anticipated that the agreement will expedite MIAL's sustainability initiatives. By 2029, the corporation wants to have zero net emissions.

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This most recent fundraising follows AAHL's $750 million financing from a consortium of international banks. According to the company, the recent deal further demonstrates Adani's capacity to draw in top-tier investors to India's infrastructure sector and access a variety of international financial markets.

“This successful issuance validates the strength of the Adani Airports' operating platform, the robust fundamentals of Mumbai International Airport, and our commitment to sustainable infrastructure development. With participation from Apollo-managed funds and leading institutional investors, we are proud to deepen our access to global pools of capital,” said Arun Bansal, CEO of Adani Airports Holdings Ltd.

He also said, “Our ability to secure one of the largest private investment-grade project finance issuances demonstrates our commitment to financial discipline, capital efficiency and long-term value creation.”

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Legal advisors on the transaction included Allen & Overy (A&O), Shearman & Sterling, and Cyril Amarchand Mangaldas representing MIAL. Milbank LLP and Khaitan & Co. acted as counsel for the investors.