Adani Group refinances $750 mn debt of Mumbai Airport unit

Adani Airports Holdings (AAHL) has secured a $750-million refinance of debt at Mumbai International Airport (MIAL) backed by international funds such as Apollo, BlackRock and Standard Chartered, people aware of the matter told ET.

The deal refinances an older senior secured private placement note taken from Apollo in 2022. The new notes maturing in July 2029 are priced at 6.9%. This will be India's first investment grade- rated private bond issuance in the airport infrastructure sector. The transaction structure also allows the operator to raise an additional $250 million if required. Sources said the company may look at other investors to raise cheaper funds for the remaining $250 million.

One of the main lenders has been Athene, an Apollo unit. Other major lenders included BlackRock-managed funds, Standard Chartered, Metlife, FWD Insurance, among others.


As the new notes are investment grade, the covenants are also lighter, according to sources. "We expect MIAL's bond holders to benefit from a robust cash flow waterfall mechanism and covenants that restrict cash upstreaming to shareholders and limit debt," as per Fitch Ratings.