Loan refinancing improves liquidity at Mumbai airport run by Adani: CRISIL

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Mumbai International Airport, managed by the Adani Group, has seen its credit profile improve following the injection of funds and the refinancing of its long-term debt at lower interest rates, the report said. rating agency CRISIL in its latest report. He added that there is sufficient cash to meet short-term debt, operating expenses and capital expenditures.

MIAL’s external debt, which included loans and non-convertible debentures, was reduced to Rs 5,730 crore from Rs 7,250 crore as of June 30.

CRISIL Ratings has assigned an ‘AA-Stable’ rating to MIAL’s proposed bank guarantee facility of Rs 310 crore. The ratings of certain long-term loans and non-convertible debentures were upgraded but withdrawn at the request of the company and upon receipt of a certificate of non-contribution from the lenders.

Last July, the Adani Group took over operations of Mumbai’s airport, which is the second busiest in the country. In May, it raised $750 million (Rs 5,715 crore) from asset manager Apollo Global to refinance existing loans and fund capital expenditure.

This will include an upgrade of equipment and the repair and maintenance of airport facilities, among others, to help provide a better customer experience.

The group also provided unsecured loans worth Rs 1,780 crore to MIAL and this was treated as quasi equity by CRISIL.

The rating also takes into account good financial flexibility and managerial and operational expertise now available in the Adani group. “Financial flexibility and refinancing risk is mitigated by the creation of a sinking fund and a Capex liquidity reserve over the next few years. Distribution and any payment to the sponsor / group is not authorized before the October 29, 2025,” CRISIL said.

CRISIL said these strengths are partially offset by exposure to risks associated with delayed tariff orders and the resumption of air traffic and non-air revenue growth amid the pandemic.

“We are poised to transform Mumbai Airport from a functional transit point into a vibrant and fully-fledged business, hospitality and leisure ecosystem for Mumbaikars and the region,” said Prakash Tulsiani. , CEO of MIAL in May.

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