Adani prepares SBI funding of ₹15,000 cr for Navi Mumbai airport

The construction of a second airport in India’s commercial capital is finally taking shape with Adani Airport Holdings framing up to ₹15,000 crore from State Bank of India for a proposed airport in Navi Mumbai.

The group is said to have secured one of the largest project financing loans from India’s largest lender, State Bank of India, indicating a return of capital expenditure loans for infrastructure projects.

Informed sources also told ET that the estimated project cost has gone up by Rs 4,000 crore to Rs 20,000 crore. “Of the total cost, Rs 5,000 crore will be borne by the Adani Group and the rest will come through borrowings,” the source said.

An email sent to the Adani group on Wednesday did not elicit any response till it was printed.

The bank is said to have completed the project appraisal. It is now finalizing the loan modalities, which are likely to be of longer duration, possibly for a period of 15 years. An executive familiar with the matter said, “It is prudent for a bank like SBI to go for such a long term project loan as the lender is also looking for prudent credit opportunities.

Sources said SBI will initially extend the proposed credit line, but is likely to sell it to other interested lenders.

Some foreign lenders are interested in potential syndication; Source added.

There was no response till the time the email was printed to SBI. Adani Group acquired management control of Mumbai airport from GVK Group in July and holds 74% stake in Mumbai International Airport Limited (MIAL), which has 74% stake in Navi Mumbai airport. The rest is owned by the Government of Maharashtra. MIAL is the company that operates the Mumbai airport.

After GVK’s acquisition of Mumbai International Airport, India’s second busiest, and AAI’s six other airports, Adani Airport Holdings Limited accounts for 25% of all passenger traffic and 33% of air cargo.

With air passenger numbers projected to rise as the industry comes out of the impact of the COVID pandemic, airport infrastructure is set to see billions of dollars of investment as India gears up to meet its airport infrastructure needs. Runs.

While Adani Group’s capital investment is going to happen at Navi Mumbai airport and AAI airports such as Jaipur, Ahmedabad, Lucknow, Guwahati, Trivandrum and Mangalore, Jewar airport in Greater Noida will also see an investment of Rs 5,000 crore by early 2024. Will get PM Narendra Modi laid the foundation stone of the airport today and the initial part of the first phase of the airport is scheduled to be operational by February 2024.

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