Adani Airports Holdings Limited (AAHL), India’s largest private airport operator and a subsidiary of Adani Enterprises, has secured $1 billion in funding from leading global investors to refinance debt at Mumbai International Airport Ltd. (MIAL). This strategic move is set to accelerate modernization, capacity expansion, and sustainability efforts for one of India’s busiest airports.

Key Details of the Financing Deal

Structure: AAHL has issued $750 million in investment-grade notes maturing in July 2029, with an option to raise an additional $250 million, making the total financing $1 billion.

Usage: The primary use of these funds is to refinance MIAL’s existing debt, originally raised in 2022. The deal also provides significant financial flexibility for new capital expenditure involving terminal upgrades, runway enhancements, and improved passenger experiences.

Investors: The transaction was led by Apollo Global Management and included top global institutional investors such as BlackRock and Standard Chartered, highlighting renewed international confidence in India’s fast-growing infrastructure sector.

Yield & Rating: The notes offer a yield of around 6.9% for a four-year tenure and are expected to be rated BBB-/stable, backed by MIAL’s robust cash flows and operational excellence.

Landmark Status: This is India’s first investment-grade private bond issuance in the airport infrastructure sector.

Strategic Significance for Adani and Indian Aviation

This refinancing coincides with a period of rapid expansion for Adani Airports, which operates eight airports and is developing the much-anticipated Navi Mumbai International Airport. The fresh capital will enable:

Modernization of facilities and technology for enhanced operational efficiency and passenger experience.

Capacity expansion to meet surging air travel demand in Mumbai and across India.

Advancements in sustainability, with MIAL targeting net-zero emissions by 2029, reinforce Adani’s commitment to environmentally responsible growth.

CEO’s Statement

Arun Bansal, CEO of Adani Airports Holdings, commented:

“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.”

Industry Impact and Looking Ahead

Adani’s $1 billion deal not only sets a benchmark for private infrastructure financing in India but also paves the way for continued investment and confidence in the Indian aviation industry. The refinancing strengthens Mumbai Airport’s financial foundation, enabling it to adapt, grow, and innovate amid rising passenger volumes and evolving infrastructure needs.

Conclusion

Adani Group’s $1 billion financing to refinance Mumbai International Airport’s debt is a significant step toward modernizing India’s aviation infrastructure. By securing funds from leading global investors, Adani is enhancing MIAL’s financial stability while driving critical upgrades in capacity, technology, and sustainability. This deal not only strengthens Mumbai’s position as a global aviation hub but also underscores Adani’s pivotal role in shaping India’s infrastructure future.

For the latest updates on Adani’s initiatives and India’s business landscape, visit https://indiabusiness.com/