Adani Group’s Big Bet on Airport Infra Biz Attracts $1 Bn from Foreign Investors

Adani Group’s airport arm has secured $1 billion via a project finance structure for its Mumbai International Airport (MIAL). Adani Airports Holdings (AAHL), a wholly owned subsidiary of Adani Enterprises, deal involves the issuance of $750 million in notes which will mature in July 2029. The proceeds from the notes, will be utilised for refinancing. The finance framework also allows an additional $250 million to be raised. 

“Adani Airports Holdings (AAHL) has secured $1 billion financing for Mumbai International Airport (MIAL). This is India’s first investment-grade private bond issuance in the airport industry,” said the company in an exchange filing on June 24. 

The finance structure will provide greater financial flexibility to the Adani Group’s airport infrastructure business bet especially for its capital expenditure plans like development, modernisation and capacity expansion, the company said. The deal was managed by Apollo Global Management.

“The financing framework to support MIAL’s strategic vision- modernisation, capacity expansion, and sustainability initiates-most notably, its commitment to achieving net zero emissions by 2029,” the company said. 

MIAL is a public-private partnership (PPP) venture between AAHL, holding a majority stake of 74% and the Airports Authority of India (AAI), holding the remaining 26%. The Adani Group, via the joint venture, aims to reinvent Mumbai International Airport as India’s largest aerotropolis. 

“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,” said CEO, AAHL, Arun Bansal. 

The development comes at a time when the port-to-media conglomerate is betting big on India’s aviation sector boom with huge investments in airport infrastructure and other non-aeronautical sources of revenue, including retail, food & beverages, duty-free and other services across its airport venture. 

“Our aim is the domestic side is to take over the entire airport business and run the entire retail operations ourselves over a period of time as the concession gets over for existing players,” Chief Executive of Adani Airport and Ospree, Gaurav Singh, had earlier told the Economic Times.