Blitz Bureau
Adani Group has raised around $750 million from global investors led by Apollo Global Management Inc. to refinance existing debt for India’s second largest airport.
Mumbai International Airport Ltd., a unit which operates Chhatrapati Shivaji Maharaj International Airport in Mumbai, will use the proceeds to refinance debt raised in 2022, the New York-based alternative asset manager said in a statement. The structure also allows for up to $250 million in additional funding for capital expenditure and capacity expansion needs.
The bonds will offer about 6.9 per cent over the four-year tenor, with the pricing linked to a gauge of US Treasuries with a similar term, according to people familiar with the matter, who asked not to be identified because the matter is confidential. Bloomberg News reported details of the fundraising earlier on June 24.
MIAL is managed by Adani Airport Holdings, a subsidiary of Adani Enterprises, the flagship company of Gautam Adani’s globally diversified Adani Group. MIAL is run through a public-private partnership between AAHL, which holds a majority stake of 74 per cent, and the Airports Authority of India, which owns the other 26 per cent.
Adani’s conglomerate, which has interests stretching from ports to green energy, has been regaining creditor confidence after the US indicted Adani last November for an alleged bribery plot.
In May, the Life Insurance Corporation of India was the sole subscriber to Adani Ports & Special Economic Zone’s record 50 billion rupee ($585 million) 15-year bond sale.
In the new round of offshore fundraising, other lenders include Metlife Inc., BlackRock Inc. and Hong Kong-based FWD Insurance, people familiar said
The private placement of four-year bonds with long-term investors such as insurers reinforces the company’s effort to elongate average maturities. In May, Fitch Ratings revised its outlook on MIAL’s USD notes to positive, while keeping its BB+ credit score. The ratings company upgraded the rating last week to BBB-, citing improvement in MIAL’s financial risk profile.