Mumbai International Airport Limited secures USD1billion financing

A&O Shearman has advised Mumbai International Airport Limited (MIAL) on a project finance framework to raise USD1bn in financing. This framework provides greater flexibility to execute a capital expenditure program for the development, modernization, and capacity enhancement of MIAL.

As part of the financing framework, MIAL concluded the private placement of USD750m senior secured notes due 2029 (Notes) to a consortium of US-based and non-US-based investors. MIAL has used the proceeds of the Notes to redeem its previously outstanding senior secured notes that were issued in 2022.

MIAL operates Chhatrapati Shivaji Maharaj International Airport (Mumbai Airport) pursuant to a 60-year, extendable concession agreement that it entered into with the Airports Authority of India in 2006. With a legacy spanning over 95 years, Mumbai Airport is one of the world’s busiest single-runway airports and the second busiest airport in India by both passenger and cargo traffic. It forms part of a network of eight airport assets managed by Adani Airport Holdings Limited, India's largest airport infrastructure company.

In addition to operating Mumbai Airport, MIAL also owns a 74% stake in Navi Mumbai International Airport, a greenfield airport project that is being built in five phases.

Pallavi Gopinath Aney, international capital markets partner and co-head of the India group at A&O Shearman, commented: “It is a pleasure to have supported Mumbai International Airport Limited on this landmark deal, which represents one of the largest IG rated private placement transactions in India’s infrastructure sector.”

The A&O Shearman team was led by Pallavi Gopinath Aney, with support from partners Kyungwon Lee, Etienne Gelencsér, of counsel Hae-Ran Song, consultant Naomi King, and associate Shinjan Alok.