Adani Airports Raises $750 Million from Foreign Banks for Expansion and Refinancing of Debt

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Prime Highlights:

Adani Airports Holdings Ltd (AAHL) raised $750 million as external commercial borrowings from a consortium of foreign banks such as First Abu Dhabi Bank, Barclays, and Standard Chartered.
The funds are for refinancing debt and expansion of capacity and development of infrastructure at six major airports.

Key Facts:

First Abu Dhabi Bank, Barclays, and Standard Chartered Bank financed the deal.
AAHL has eight airports in India, including the new Navi Mumbai International Airport.
The company will increase its passenger handling to 300 million per year by 2040.

Key Background

Adani Airports Holdings Ltd, a subsidiary of Adani Enterprises, is India’s largest private airports operator. The company operates eight airports in the nation, namely Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. The firm is also constructing the Navi Mumbai International Airport, which will come into operation soon.

In order to finance its ambitious modernization and expansion project, AAHL borrowed $750 million of external commercial borrowings from a syndicate of leading global banks led by First Abu Dhabi Bank, Barclays, and Standard Chartered. The funds will be utilized for two principal purposes: repayment of outstanding debt and financing modernization of infrastructure and capacity upgrade at six of its iconic airports.

This investment is AAHL’s grand strategy overall to be operationally more efficient, to have room to take in more passengers, and to improve overall passenger experience. Apart from investing in infrastructure, AAHL will develop its non-aeronautical enterprises like retailing, food and beverage, duty-free, and other airport-related services to broaden revenues.

The successful fund raise is a reflection of the high confidence that international investors have in the Indian aviation industry and in the growth path of AAHL. With this investment, AAHL will be in a position to further strengthen its market position in India’s domestic aviation industry, improve customer experience with technology and sustainability initiatives, and support India’s airport infrastructure development objectives in a meaningful way.