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Mumbai Airport Raises $750M Through Bond For Modernization

factory
Jun 25, 2025
Article Source LogoAviation Week Network-Factory
Aviation Week Network-Factory

The private company managing Mumbai’s Chhatrapati Shivaji Maharaj International Airport (BOM) has lined up $1 billion in financing that it plans to invest in modernizing the airport.

BOM is India’s second busiest gateway, handling 54.8 million passengers in 2024—a 6.3% increase year-on-year. The modernization plan will include the redevelopment of Terminal 1, with work expected to start later this year.

The phased project will overhaul the terminal to serve domestic operations, with provisions for future international integration. Once complete, Terminal 1 will boost its annual passenger handling capacity by 42% to 20 million. Planned infrastructure upgrades include installation of a district cooling system, electrical substations, and a new baggage handling system. A multi-modal transport hub is also in development, providing direct links to metro and bus stations.

Adani Airports Holdings said the money has been secured through “India’s first investment grade rated private bond issuance in the airport infrastructure sector.” Adani Airports has initially raised $750 million through the issuance of notes maturing in July 2029. The financing structure enables raising an additional $250 million in the future, according to the company.

“This framework will provide enhanced financial flexibility for the capital expenditure program of [BOM] for development, modernization and capacity enhancement,” Adani Airports said.

A “syndicate of leading institutional investors and insurance companies” participated, the company noted, including Apollo Global Management, BlackRock and Standard Chartered.

The willingness of the investors to buy bonds points to “global confidence in India’s Infrastructure opportunity and Adani Airports’ operating platform,” the company said. “Backed by [BOM’s] stable asset base and cash flows and operational excellence, the notes are expected to be rated BBB-/stable.”

Adani Airports CEO Arun Bansal said the success of the bond issuance reflects the “robust fundamentals of Mumbai International Airport and our commitment to sustainable infrastructure development,” adding the company aims to “deepen our access to global pools of capital.”

The Airports Economic Regulatory Authority of India recently changed the passenger user fee structure at BOM, increasing fees on international travelers, another means of providing more money to the airport.

Construction of the new Terminal 1 is expected to be completed by 2028 or 2029, with the existing structure slated for demolition during the initial phase. Terminal 2 and the upcoming Navi Mumbai International Airport (NMI) will handle displaced capacity during the redevelopment.

Adani Airports Holdings is also spearheading the development of NMI, which is targeted to begin commercial operations in the third quarter of 2025. The $2 billion project broke ground in August 2021. While an exact opening date has not been confirmed, a NOTAM issued in May by the Airports Authority of India indicated operations will not commence before Aug. 6. 

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