Adani Airport Holdings to Raise Funds through Non-Convertible Debentures
Adani Airport Holdings, the leading airport infrastructure company in India, has announced its plans to raise Rs 19.5 billion through non-convertible debentures (NCDs). The funds generated from these NCDs will be used to provide inter-company loans to its various airport subsidiaries, including Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati, and Thiruvananthapuram.
The NCDs offered by Adani Airport Holdings are set to have a coupon rate of 9.35% per annum, making it an attractive investment opportunity for potential investors. This move comes as the company aims to settle payments owed to the Airports Authority of India for prior-period regulatory assets that have been approved by the Airport Economic Regulatory Authority of India (AERA).
Strong Ratings and Arrangers for the NCD Issue
To ensure the success of this fundraising endeavor, Adani Airport Holdings has obtained rave reviews from both India Ratings and CRISIL Ratings. These reputable rating agencies have assigned the NCDs an A+/Stable rating, further adding credibility to the offering.
To arrange and facilitate the NCD issue effectively, Adani Airport Holdings has teamed up with Axis Bank and Trust Investment Advisors Private Ltd, two prominent financial institutions known for their expertise in such transactions. The active participation of such esteemed arrangers is expected to contribute to the success of the NCD issue.
Opening of the NCD Issue and Tenor Details
The non-convertible debenture issue opened to investors on September 30, 2024, generating significant interest from both institutional and retail investors. With a tenor of 3 years, 11 months, and 7 days, the NCDs provide a mid-to-long-term investment option with the potential for stable returns.
This strategic move by Adani Airport Holdings aligns with the company’s vision to expand and enhance its airport subsidiaries across the country. By raising funds through NCDs, Adani Airport Holdings aims to strengthen its financial position and ensure the smooth functioning of its operations.
Supporting India’s Aviation Industry Growth
The aviation industry plays a crucial role in the country’s economic growth, connecting people and fueling commerce. Adani Airport Holdings’ decision to raise funds for its airport subsidiaries demonstrates its commitment to supporting and driving the growth of India’s aviation sector.
The funds raised through the NCD issue will not only help Adani Airport Holdings settle its payments but also inject capital into its airport subsidiaries, enabling their expansion and the availability of upgraded facilities and services. This development will ultimately contribute to the development of India’s aviation infrastructure, benefiting millions of passengers.
Overall, Adani Airport Holdings’ decision to raise Rs 19.5 billion through non-convertible debentures showcases its forward-thinking approach to financial management and expansion. With strong ratings assigned to the NCDs and reliable arrangers at its side, the company is well-positioned to achieve its goals and continue being a key player in the Indian aviation industry.
