Adani Airport Holdings raises ₹400 Crore in debentures

19 Mar 2024 , 10:33 AM

Adani Airports Holdings collected ₹400 Crore in secured, listed, rated, non-convertible debentures for three and five years at a 10% yield, according to top money market authorities.

The bonds are issued for capital expenditures, refinancing, and loans to special-purpose companies. According to the persons quoted above, the coupon will be paid annually, but the principle will be paid in lump sums.

Adani Airport Holdings (AAHL) manages seven airports in India, including Mumbai, Ahmedabad, Lucknow, Mangaluru, Guwahati, Jaipur, and Thiruvananthapuram. The eighth airport, Navi Mumbai International Airport, is currently under development.

In a rating assessment dated January 29, CRISIL noted that AAHL has debt commitments of ₹1,300 Crore for fiscal years 2024 and 2025, which would be satisfied with a cash flow of ₹1,600 Crore. The study further stated that the business has a capex plan of ₹8,400 Crore for fiscal 2024 and 2025, which would be funded by ₹2000 Crore in capital advances, internal accruals, and extra debt.

The company’s $400 million in external commercial borrowings are completely hedged; nonetheless, refinancing risk remains due to a bullet payback in fiscal 2026, according to CRISIL. It stated that AAHL is exposed to project implementation risk since it intends to spend ₹21,900 Crore on aerocapex at the six airports between 2024 and 2028. The management has signalled to CRISIL that they would arrange for debt funding for extra capex if needed, according to the report.

The airport’s income is divided between aero and non-aero sources. The aero includes passenger costs as well as charges for landing, parking, cargo, ground handling, and fuel. The income has remained consistent as passenger traffic increased in the first eight months of FY24. CRISIL anticipates total non-aero income to reach ₹800 Crore by fiscal 2024. If non-aero revenue traction falls below this level, the rating will suffer.

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