Debt

Debt Financing

MIAL raises Rs.7,200-Cr via NCDs and foreign loans; refinances debt

Business Standard  

Adani Group-controlled Mumbai International Airport (MIAL) has raised around INR 7,200 crore via non-convertible debentures (NCDs) and loans from foreign lenders to refinance its debt. The capital raise happened last month and around INR 6,500 crore of loans owed to domestic lenders were repaid. CRISIL has withdrawn its rating for MIAL's debt on receipt of a no-due certificate from banks. The airport company's board approved proposals to issue and allot redeemable NCDs worth around INR 4,000 crore to banks and financial institutions, including Barclays Bank, Deutsche Bank, JP Morgan, and Standard Chartered Bank. The debentures carry a coupon rate of 10.75-12%, have a tenor of 12-25 months, and are secured by pledge of Adani Group's 74% stake in MIAL and charge over various assets. While JP Morgan Securities invested INR 1,500 crore, Barclays Bank, Standard Chartered, and Deutsche Bank invested INR 1,127 crore, Rs 900 crore, and INR 500 crore, respectively, in the debentures. Along with payment of overdue loans, Adani Group has also infused around INR 700 crore in MIAL for capital expenditure and finance purposes.