India's Adani Airport Holdings raises $250m for airport development

10 May 2022
India's Adani Airport Holdings raises $250m for airport development

India’s Adani Airport Holdings Limited (AAHL) has secured funding of $250m for airport development through an ECB facility from a consortium of Standard Chartered and Barclays Bank.

AAHL develops and manages some of the key airports across the country. The facility also has the option to raise additional capital of $200m.

The capital raised will cover capital expenditure for the development of six airports and is said to be the first step of AAHL’s capital management strategy.

Its strategy focuses on tapping the public capital markets to facilitate long-term capital sources for infrastructure development.

In a statement, an AAHL spokesperson said: “We are focussed on delivering high-quality infrastructure access to our consumers both through physical and digital channels.

“The first phase of our capital management plan is now set in motion, with the funding of AAHL, Mumbai International Airport Limited (MIAL) and Navi Mumbai International Airport Limited (NMIAL), and we will now focus on scaling up the airports business into one of the largest airport platforms globally.

“We are grateful to our stakeholders and consumers for their continued support and their confidence in us.”

Incubated within the group’s flagship company Adani Enterprises Limited (AEL), AAHL has an integrated network of eight airports located around city centres in the country.

Its network covers 50% of the top ten domestic routes, and it manages nearly 23% of India’s total air traffic as well as roughly 30% of air cargo traffic.

Last week, MIAL, which is managed by AAHL, raised $750m in funding from Apollo-managed credit funds.

The funds will be used to refinance short-term debt and provide new capital expenditure.

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