Mumbai Airport Bonds Take Flight: Fitch Assigns Final ‘BBB-’ Rating with Stable Outlook

Mumbai International Airport Ltd (MIAL) has received a significant boost in investor confidence as Fitch Ratings assigned a final ‘BBB-’ rating with a Stable outlook to its USD 750 million senior secured notes. This marks a key milestone for India’s private airport infrastructure sector, positioning MIAL among the few investment-grade issuers in the space.

 

The rating reflects MIAL’s stable cash flows, regulated asset base, and strong operational track record under the Adani Group. The proceeds from the bond issuance will be used to refinance existing bridge loans and support capital expenditure for modernization and sustainability initiatives.

 

Key Highlights:

 

- Fitch Ratings upgraded MIAL’s USD notes to ‘BBB-’ from ‘BB+ (EXP)’, citing improved financial metrics and structural protections.

- The notes mature in July 2029 and are backed by ring-fenced cash flows and protective covenants.

- The issuance is part of a $1 billion financing package, including an option to raise an additional $250 million.

- Funds will support runway efficiency upgrades, digital infrastructure, and net-zero emission goals by 2029.

- The deal saw strong participation from global institutional investors, including Apollo- and BlackRock-managed funds.

- MIAL’s passenger traffic has rebounded post-pandemic, with a CAGR of 9% over the past five years.

- The rating underscores growing global confidence in India’s infrastructure growth story and Adani’s airport platform.

 

This marks a landmark moment for MIAL, reinforcing its financial credibility and unlocking long-term capital for expansion.

 

Sources: Fitch Ratings, SSBCrack, Aviation News Online