Apollo announced that their credit funds have purchased $750m of senior secured private placement notes from the Mumbai International Airport, an entity that owns and operates Chhatrapati Shivaji Maharaj International Airport in Mumbai, the second largest airport in India.
Apollo’s Credit business was able to provide a scaled, long-term capital solution for MIAL, with a majority of proceeds from the 7-year, $750m notes to be used to refinance existing shorter maturity loans and new capital expenditure. MIAL is a premium asset within the Adani’s expanding airport infrastructure Portfolio and the marquee private placement is among the largest-ever completed in India.
“We are pleased to work with the Adani’s to provide a comprehensive, long-term capital solution for the Mumbai International Airport, a mission-critical infrastructure asset in India,” said Brigitte Posch, Apollo Partner and Global Head of Emerging Market Debt. “Amid significant market volatility, our ability to commit to the entire transaction and take a long-term view reflects some of the key strengths of Apollo’s global credit platform and perpetual capital base.”
“We are set to transform the Mumbai airport from a functional transit point into a vibrant, full-fledged business, hospitality and leisure ecosystem for Mumbaikars and the region,” said Mr Prakash Tulsiani, CEO, MIAL. “Combined with the Adani Portfolio’s proven speed of execution, the proceeds of this issuance will allow us to accelerate MIAL’s transformation and provide immense value to our stakeholders in the post-pandemic period and thereby improve the consumer experience.”
Apollo Partner and Head of Asia-Pacific Matt Michelini added, “At Apollo, we’re helping to build and finance stronger businesses around the world, and we’re excited to increase this activity across Asia Pacific, where we see growing demand for credit-oriented solutions.”
Over the last 12 months, Apollo has provided more than $1 billion of capital commitments in India and the transaction builds upon significant momentum across the broader Asia-Pacific region, including strategic investments in FWD Insurance (Hong Kong) and Challenger (Australia). Apollo is particularly focused on applying its expertise in fixed income replacement and yield-oriented solutions to generate high-quality investment opportunities for institutions and individuals and provide great companies with attractive, comprehensive capital solutions.
CSMIA has a rich history of over 90 years and has been a gateway to Mumbai for the rest of India and the world. It is one of the world’s busiest single-runway airports and the second largest airport in the country. It forms a part of an airport network of eight airport assets under Adani Airport Holdings Limited (AAHL). MIAL also owns 74% stake in Navi Mumbai International Airport Limited (NMIAL), the greenfield airport being developed in Suburban Mumbai, which when operational will be the “twin airport” servicing passengers in the Mumbai Metropolitan Region.
MIAL is fully committed to the UN Sustainability Development Goals with a specific focus on SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities) & SDG 13 (Climate Action), demonstrated through initiatives that include solar energy installation projects, electric vehicle usage, conversion to LED lamps and more. The airport has deployed a 100% single-use plastic free philosophy and zero water discharge through a sustainable water management system. Recently, Terminal 2 has been re-certified with IGBC Platinum rating in IGBC Green Existing Building Operation and Maintenance Category by Confederation of Indian Industries.
Allen and Overy and Cyril Amarchand Mangaldass acted as legal advisors to MIAL for the issuance, while Linklaters and Talvar Thakore and Associates acted as legal advisors to the Apollo Funds.
Source: Press Release