Adani Airports raises $750 mn from consortium of international banks

The consortium of lenders included First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank

Adani Enterprises' arm Adani Airports Holdings Ltd (AAHL) on June 4 said it has raised $750 million from a consortium of international banks, including First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank.

AAHL, which is India’s largest private airport operator, raised the funds via external commercial borrowings, a stock exchange filing said.

The stock of the parent firm Adani Enterprises recorded a marginal gain of 0.34 percent at  Rs 2,479.2 on NSE at 11:22 am.

The funds raised will be utilized to refinance existing debt, invest in infrastructure upgrades and capacity expansion across its six airports viz. Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram, the company statement said. The proceeds will also be used to scale the non-aeronautical businesses, including Retail, F&B, duty free and services across the airport network, it said.

“The trust placed in us by leading global financial institutions underscores the long-term value and potential of India’s aviation infrastructure. AAHL is well on its path to deliver exceptional customer experiences, leveraging technology for seamless operations, and prioritizing sustainability and community engagement across its airport network,” said Arun Bansal, CEO of AAHL.

The company had appointed Latham and Watkins LLP and Linklaters LLP as the English Law counsel for the transaction, while Cyril Amarchand Mangaldass and TT&A were the Indian law counsel.

Meanwhile, Bansal revealed that the company is considering bidding for ground handling services at Mumbai and Ahmedabad airports. The development comes amid Turkish operator Celebi Hava Servisi AS' revocation of security clearance over Turkey's support for Islamabad during the recent India-Pakistan conflict.

The foray aligns with the ports-to-power conglomerate’s strategy of branching into allied sectors that dovetail with its existing businesses

The Adani group firm provided services to around 94 million passengers in last financial year. The company has a capacity of over 110 million passengers as of now and it intends to increase it volume to 300 million per annum by 2040.

Moreover, AAHL said that the upcoming Navi Mumbai International Airport will be operational shortly with an addition of over 20 million passengers in the first phase, extending up to 90 million later. The new airport will help boost the Mumbai region's aviation infrastructure, the statement said.