Adani Group pledges 51% stake in Navi Mumbai Airport for Rs 12,770 cr loan

The Adani Group-controlled Mumbai International Airport Ltd (MIAL) has pledged a 51 per cent stake in the upcoming Navi Mumbai International Airport (NMIAL) to the State Bank of India (SBI). This move is linked to a substantial loan facility amounting to Rs 12,770 crore, sanctioned by SBI for the greenfield airport project, according to a report by the Financial Express.

MIAL, which holds a 74 per cent stake in NMIAL, is overseeing the development of the Navi Mumbai airport, which is expected to commence operations in the last quarter of the financial year 2024-25 (FY25), slightly delayed by three months from its initially planned opening.

Financing the Navi Mumbai Airport project

The Adani Group announced the financial closure for the NMIAL project in March 2022, following SBI’s commitment to underwriting the entire debt requirement of Rs 12,770 crore. Prior to this, NMIAL had secured a financing arrangement worth Rs 8,645 crore with Yes Bank, intended to cover part of the costs associated with the design, development, and construction of Phase I of the airport. However, this arrangement was unilaterally cancelled by Yes Bank, leading to a revised financing plan with SBI.

Navi Mumbai airport to handle 90 mn passengers by FY32

Upon completion of all phases, the Navi Mumbai airport is projected to handle a substantial volume of 90 million passengers and 2.6 million tonnes of cargo annually by FY32. The first phase alone will introduce a capacity of 20 million passengers, with the airport eventually featuring four passenger terminals and two parallel runways. In comparison, the existing Mumbai International Airport currently handles 55 million passengers annually.

Adani Airport Holdings looks to raise upto Rs 30,000 cr

Adani Airport Holdings Ltd (AAHL), which manages MIAL and controls 23 per cent of India’s air traffic, recently sought shareholder approval to raise its borrowing limit from Rs 20,000 crore to Rs 30,000 crore. This decision, made through a special resolution at the company's annual general meeting, reflects AAHL’s ambition to support further expansion and manage its financial obligations.

AAHL currently operates seven airports across India, including the Mumbai International Airport. However, financial challenges persist, as MIAL reported a loss of Rs 608 crore for FY24, with Ahmedabad airport posting a loss of Rs 327 crore. Other airports in the AAHL portfolio, located in Jaipur, Guwahati, Thiruvananthapuram, Mangaluru, and Lucknow, also reported losses for the same financial year.