Adani's Mumbai Airport secures $750 mn deal with Apollo-led investor group

The agreement also allows for up to $250 million in additional funding for capital expenditure and capacity expansion needs

Mumbai International Airport Ltd (MIAL), a subsidiary of Adani Airports Holdings Limited (AAHL), has secured a $750 million investment from a consortium of global investors led by Apollo Global Management Inc to refinance its existing debt, in a deal that allows operational flexibility.

 

The funds will be used to refinance a loan raised in 2022, Apollo said in a statement. The financing structure also permits up to $250 million in additional capital for infrastructure upgrades and capacity expansion. 

 

“Working with the Adani Group, we are pleased to deliver a scaled, bespoke capital solution for MIAL, supporting a critical infrastructure asset and the next phase of its ambitious growth capex plans,” said Apollo Partner Jamshid Ehsani. “This marks Apollo’s second large financing for MIAL, having previously provided operational flexibility to deleverage and now delivering an investment grade rated solution.”

 

 

Arun Bansal, CEO of AAHL, added, “This financing provides us with greater operational flexibility and positions us to further enhance the airport experience for millions of travelers. With Apollo’s continued support and the Adani Group’s proven execution capabilities, we are well-positioned to realize our vision of transforming MIAL into a world-class asset with a focus on efficiency, comfort and sustainability.”

 

According to a Bloomberg report from June, MIAL is expected to be spun off and listed by March 2027. 

 

MIAL operates the Chhatrapati Shivaji Maharaj International Airport in Mumbai, the second-largest airport in India. It is managed by Adani Airport Holdings Ltd, a unit of Adani Enterprises Ltd—the flagship firm of billionaire Gautam Adani’s globally diversified Adani Group. The airport is operated through a public-private partnership in which Adani Airport Holdings holds a 74 per cent majority stake, with the Airports Authority of India(AAI) owning the remaining 26 per cent.

 

The Adani Group, which has interests ranging from ports to renewable energy, has been working to restore lender confidence following allegations of bribery brought against it in the US last November. 

 

In May, Life Insurance Corporation of India was the sole subscriber to a record ₹5,000 crore ($585 million) 15-year bond issue by Adani Ports & Special Economic Zone Ltd.

 

In this latest offshore fundraising round, other participating lenders reportedly include MetLife Inc, BlackRock Inc, and Hong Kong-based FWD Insurance, according to Bloomberg News.

 

The private placement of four-year bonds with long-term institutional investors such as insurers reflects the company’s broader strategy to lengthen average debt maturities.

 

Adani Airport Holdings currently operates eight airports across India and is also developing the Navi Mumbai International Airport, a strategically important project near Mumbai that is expected to become operational soon.