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    Adani Airports raises Rs 400 crore via NCDs

    Synopsis

    In a rating report dated January 29, Crisil stated that AAHL has debt obligations of Rs 1300 crore during the fiscal year 2024 and 2025, which will be met through a cash flow of Rs 1600 crore. The report also said that the company has a capex plan of Rs 8400 crore in fiscal 2024 and 2025, which will be funded through capital advances of Rs 2000 crore, internal accrual, and additional debt.

    Adani Airport Holdings raises Rs 400 crore at 10%
    Adani Airports Holdings raised Rs 400 crore secured, listed, rated, non-convertible debentures for three and five years offering 10%, said senior officials from the money market.

    The bonds are raised for capex funding, refinance, and for loans to its special purpose vehicles.

    While the coupon would be payable annually, the principal will be bullet payment, the people cited above said.

    Adani Group did not respond to ET’s request for comments.

    Adani Airport Holdings (AAHL) operates seven airports in India– Mumbai, Ahmedabad, Lucknow, Mangaluru, Guwahati, Jaipur and Thiruvananthapuram. Its eighth airport, Navi Mumbai International Airport, is under construction.

    In a rating report dated January 29, Crisil stated that AAHL has debt obligations of Rs 1300 crore during the fiscal year 2024 and 2025, which will be met through a cash flow of Rs 1600 crore. The report also said that the company has a capex plan of Rs 8400 crore in fiscal 2024 and 2025, which will be funded through capital advances of Rs 2000 crore, internal accrual, and additional debt.

    The company’s external commercial borrowings of $400 million are fully hedged; however, refinancing risk exists as it has bullet repayment in fiscal 2026, Crisil stated.

    It said AAHL is exposed to project implementation risk considering that between 2024 and 2028 it has plans to incur aero capex of Rs 21,900 crore for the six airports. The management has indicated to Crisil that they will arrange for debt financing for additional capex when required, the report said.

    The airport revenues are split between aero and non-aero streams. The aero comprises passenger fees, and landing, parking, cargo, ground-handling, and fuelling charges. The revenue is stable as passenger traffic has gone up in the first eight months of FY24. Crisil expects the total non-aero revenue to increase to about Rs 800 crore by fiscal 2024. Traction in non-aero revenue lower than this will be a downside risk to the rating.


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    ( Originally published on Feb 21, 2024 )

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