Adani Airports Secures $750 Million for Expansion and Upgrades
Adani Airports' Major Financial Move
Adani Airports Holdings Ltd (AAHL), recognized as India's foremost private airport operator and a subsidiary of Adani Enterprises Limited, has successfully secured $750 million through External Commercial Borrowings (ECB) from a group of international banks. This significant financial transaction was spearheaded by First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank.
The funds raised will be allocated towards refinancing existing debts, enhancing infrastructure, and expanding capacity at six airports: Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. Additionally, the investment will support the growth of non-aeronautical sectors, including retail, food and beverage, duty-free, and various services throughout the airport network.
In the fiscal year 2024-25, AAHL catered to 94 million passengers, with a total capacity of 110 million. The company aims to increase this capacity to 300 million passengers annually by 2040 through a phased development approach. As part of this strategy, the Navi Mumbai International Airport is anticipated to commence operations soon, initially accommodating 20 million passengers, with plans to expand capacity to 90 million over time, significantly enhancing the aviation infrastructure in the Mumbai region.
CEO's Vision for the Future
Arun Bansal, CEO of AAHL, emphasized, "The confidence shown by prominent global financial institutions highlights the long-term potential and value of India's aviation infrastructure. AAHL is committed to providing outstanding customer experiences by utilizing technology for efficient operations while focusing on sustainability and community involvement across its airport network." He further stated, "As we progress, AAHL is dedicated to being the Gateway to Goodness, offering customer-focused solutions and developing world-class airport infrastructure that sets international standards in service and sustainability."
Legal counsel for the transaction was provided by Latham and Watkins LLP and Linklaters LLP for English law, while Cyril Amarchand Mangaldas and TT&A represented Indian law.