Mumbai International Airport Ltd (MIAL), which owns and manages the Chhatrapati Shivaji Maharaj International Airport in Mumbai, the second biggest airport in India, on Wednesday told that it has raised $750 million of debt in a private placement from an American private capital fund manager Apollo.
Chhatrapati Shivaji Maharaj International Airport in Mumbai
MIAL told that Apollo’s Credit business was able to provide a scaled, long-term capital solution for the company and that the majority of proceeds from the 7.25-years, $750 million notes will be used to refinance existing shorter maturity loans and new capital expenditure.
“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,” told Brigitte Posch, Apollo Partner and Global Head of Emerging Market Debt. “Amid significant market volatility, our ability to commit to the entire transaction and take a long-term view reflects some of the key strengths of Apollo’s global credit platform and perpetual capital base.”
Adani Airports Holding Ltd
This issuance by MIAL, which is a strategic asset in the Adani Airports Holding Ltd (AAHL), marks the action in its capital management plan, the company told.
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It is one of the world’s most active single-runway airports and the second largest airport in the country. It forms a part of an airport network of eight airport support under Adani Airport Holdings Limited.
74% stake in Navi Mumbai International Airport Limited
MIAL also owns a 74% stake in Navi Mumbai International Airport Limited, the greenfield airport being developed in Suburban Mumbai, which when operational will be the “twin airport” servicing passengers in Mumbai Metropolitan Region. Recently, the Navi Mumbai Airport declared financial closure of the entire debt requirement of Rs12,770 crore with the State Bank of India.
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“We are set to transform the Mumbai airport from a functional transit point into a vibrant, full-fledged business, hospitality, and leisure ecosystem for Mumbaikars and the region,” told Prakash Tulsiani, CEO, MIAL. “Combined with the Adani Portfolio’s proven speed of execution, the proceeds of this issuance will permit us to accelerate MIAL’s transformation and provide immense value to our stakeholders in the post-pandemic time and thereby improve the consumer experience.”
Allen and Overy and Cyril Amarchand Mangaldass acted as legal advisors to MIAL for the issuance, while Linklaters and Talvar Thakore and Associates acted as legal advisors to Apollo.
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