Adani Airport Holdings Ltd (AAHL), a wholly owned subsidiary of Adani Enterprises Ltd, has a three year senior secured ECB external commercial borrowing facility from a consortium of Standard Chartered Bank (SCB) and Barclays Bank PLC of $250 million received. The facility also has an option to raise an additional $200 million. Adani Airport is looking to step up its push into B2C infrastructure assets and says it will use the funds to invest and develop six airports.
“The first phase of our capital management plan is now underway with the financing of Adani Airport, Mumbai International Airport (MIAL) and Navi Mumbai International Airport (NMIAL) and we will now focus on merging the airport business into a single the largest airport platforms worldwide,” says a company spokesman.
The latest fundraising comes after MIAL, which owns and operates Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai and is the second busiest airport in India, raised $750 million in senior secured private placement bonds from Apollo-managed debt funds. Apollo’s Credit Business was able to provide MIAL with a scaled, long-term capital solution, with the majority of the proceeds from the $750 million 7.25-year notes to be used to refinance existing shorter-dated loans and new investments .
Adani Airport has thus tapped into three different capital pools totaling US$2.74 billion.
The company operates a network of eight airports in major Indian cities and controls 50% of the top 10 domestic routes. It controls 23% of India’s total air traffic and 30% of India’s air cargo, and handles 200 million consumers including passengers and non-passengers.
Net profit of Adani Airport’s parent company Adani Enterprises rose 30% to Rs.304 crore in the January-March quarter of FY22, while revenue rose 84% to Rs.25142 crore.
Adani Enterprises is the flagship of Gautam Adani-led Adani Group, with interests in Adani Ports for transmission and power and green energy, data centers for gas and edible oil. The company is now also expanding its media presence. Adani Enterprises launched AMG Media Networks last month to expand its publishing, advertising, broadcasting, content distribution network. Earlier in March, Adani Media Ventures agreed to purchase Quintillion Business Media, Bloomberg LP’s Indian partner. The company has also hired Sanjay Pugalia to head up Adani Media Ventures to accelerate its expansion.
Adani Enterprises shares are trading on the National Stock Exchange (NSE) down 1.9% at Rs 2,306. The stock is up 34.82% over the past six months while up 28.4% year-to-date. At the same time, benchmark BSE Sensex is down 9.71% over the past six months, while down 7.80% year-to-date.
