Adani Airports Secures $750 Million for Expansion and Upgrades
Major Funding for Airport Development
Adani Airports Holdings Ltd (AAHL), the leading private airport operator in India and a subsidiary of Adani Enterprises Limited, has successfully secured $750 million through External Commercial Borrowings (ECB) from a group of international banks. This funding round was spearheaded by First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank.
The funds 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 across the airport network.
Future Capacity Goals
In the fiscal year 2024-25, AAHL catered to 94 million passengers, with a total capacity of 110 million. The company has ambitious plans to increase this capacity to 300 million passengers annually by 2040 through a phased development approach. A significant milestone in this plan is the upcoming operational launch of the Navi Mumbai International Airport, which is projected to accommodate 20 million passengers in its initial phase, eventually scaling up to 90 million annually, thereby enhancing the aviation infrastructure in the Mumbai region.
Leadership Insights
Arun Bansal, CEO of AAHL, expressed, "The confidence shown by prominent global financial institutions highlights the long-term potential and value of India's aviation sector. AAHL is on track to provide outstanding customer experiences by utilizing technology for efficient operations while focusing on sustainability and community involvement across our airport network." He further emphasized AAHL's commitment to being a leader in delivering customer-focused solutions and establishing world-class airport infrastructure that meets global standards in service and sustainability.
Legal Counsel
Latham and Watkins LLP along with Linklaters LLP served as legal advisors under English law for this transaction, while Cyril Amarchand Mangaldas and TT&A provided counsel under Indian law.