MUMBAI- Adani Airports Holdings successfully raised Rs 400 crore through secured, listed, rated, non-convertible debentures with a 10% offering for three and five years, according to a senior official, which reported to ET in the money market.
The raised funds are intended for capital expenditure (capex) funding, refinancing, and providing loans to its special purpose vehicles. While the coupon will be payable annually, the principal will be a bullet payment, as indicated by sources familiar with the matter.
Adani Airport Raises 400 Crore
Adani Airport Holdings (AAHL) manages seven airports in India – Mumbai, Ahmedabad, Lucknow, Mangaluru, Guwahati, Jaipur, and Thiruvananthapuram. Its eighth airport, Navi Mumbai International Airport, is currently under construction.
A rating report dated January 29 by Crisil stated that AAHL has debt obligations of Rs 1300 crore during fiscal years 2024 and 2025, which will be met through a cash flow of Rs 1600 crore.
The report also mentioned that the company has a capex plan of Rs 8400 crore in fiscal years 2024 and 2025, to be funded through capital advances of Rs 2000 crore, internal accruals, and additional debt.
CRISIL Report
Crisil reported that the company’s external commercial borrowings of $400 million are entirely hedged; however, there is a potential refinancing risk due to a bullet repayment scheduled for fiscal year 2026.
According to Crisil, AAHL faces project implementation risk, given its plans to incur aero capex of Rs 21,900 crore for the six airports between 2024 and 2028. The management has assured Crisil that they will arrange for debt financing as needed for additional capex, as mentioned in the report.
The airport’s revenues are divided between aero and non-aero streams, with aero including passenger fees, landing, parking, cargo, ground handling, and fuelling charges.
The revenue remains stable due to increased passenger traffic in the first eight months of FY24. Crisil anticipates the total non-aero revenue to reach around Rs 800 crore by fiscal year 2024.
Any slowdown in non-aero revenue traction below this level poses a downside risk to the rating.
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