Adani Raises $750 Million From Apollo To Transform Mumbai Airport Into 'Hospitality And Leisure Hub'

by India Infrahub - May 5, 2022 12:52 PM +05:30 IST
Adani Raises $750 Million From Apollo To Transform Mumbai Airport Into 'Hospitality And Leisure Hub'Terminal 2 at Chhatrapati Shivaji International Airport in Mumbai, - Representative Image (Abhijit Bhatlekar/Mint via Getty Images)
Snapshot
  • Mumbai airport has successfully raised $750 million in debt from Apollo to refinance existing shorter maturity loans and make new capital expenditure.

To refinance existing shorter maturity loans and cater for the new capital expenditure, Mumbai International Airport Ltd. (MIAL) has successfully raised $750 million in debt from Apollo.

Apollo is a global, high-growth alternative asset manager. As of December 2021, Apollo had approximately USD 498 billion of assets under management.

Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, one of the world's busiest single-runway airports and the second largest airport in India, is operated by MIAL.

MIAL is a Public-Private Partnership (PPP) venture between Adani Airport Holdings Limited (AAHL), holding a majority stake of 74 per cent, and the Airports Authority of India, holding the rest of 26 per cent.

MIAL also owns a 74 per cent 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.

Apollo's Credit business provided a scaled, long-term capital solution for MIAL, with most proceeds from the 7-year, $750 million notes to be used to refinance existing shorter maturity loans and new capital expenditure.

According to Prakash Tulsiani, CEO of MIAL, the proceeds from Apollo would be helpful to transform the Mumbai airport from a functional transit point into a vibrant, full-fledged business, hospitality and leisure ecosystem.

"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 said.

"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.

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