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Adani seeks $1 billion to refinance Mumbai airport debt

Adani seeks $1 billion to refinance Mumbai airport debt

Barclays Plc and JPMorgan Chase & Co are among the banks that are in discussion with Adani to provide funds to Adani Airport Holdings Ltd

MIAL has a debt of over $1 billion MIAL has a debt of over $1 billion

Gautam Adani is seeking a loan of $1 billion to refinance the existing debt of Mumbai international airport. Mumbai International Airport Ltd (MIAL) has a debt of over $1 billion.

Barclays Plc and JPMorgan Chase & Co are among the banks that are in discussion with Adani to provide funds to Adani Airport Holdings Ltd, according to a report in Bloomberg.

In February, Adani Airport completed the purchase of a 23.5 per cent stake in the Mumbai airport. It had bought out two South African companies. In a stock exchange notification on Saturday, the company said that its airports division had acquired 13.5 per cent stake of Bidvest and 10 per cent stake of Airport Company of South Africa, for Rs 1,685 crore.

This deal was completed after Adani Group signed an agreement with GVK Group to acquire its 50.5 per cent stake in MIAL last August. The deal also included acquisition of the 23.5 per cent stake of the two South African companies. According to the deal, Adani Group also agreed to take over Rs 2,500 crore of debt owed by GVK Airport Developers.

There have been no comments from representatives for Barclays, Deutsche Bank, JPMorgan, Adani or GVK.

The aviation industry has been severely hit by the Covid pandemic. Rating agency ICRA said in March that Indian airports could suffer a loss of Rs 5,400 crore in FY21.

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