The Gautam Adani-led Adani Group has convinced the country's largest lender, the State Bank of India, to underwrite its entire debt worth Rs 12,770 crores, thereby achieving the financial closure of the greenfield airport at Navi Mumbai. SBI has selected underwriters for an institutional share sale to raise at least $1 billion. Bank of America Corporation, CLSA Ltd. and HSBC Holdings Plc were the chosen picks by SBI. Kotak Mahindra Bank Ltd. and SBI Capital Markets Ltd. were also selected to work on the deal.
Adani Group- Largest Airport Infrastructure Company
The Adani Group took over the Mumbai International Airport and the Navi Mumbai Airport from GVK Group in July 2021, making it the largest airport infrastructure company, accounting for 25 per cent of all passenger traffic and 33 per cent of air cargo. The company mentioned in a statement, "Navi Mumbai International Airport Private Ltd (NMIAL), a subsidiary of Adani Enterprises Ltd (AEL), has achieved financial closure for the greenfield international airport project at Navi Mumbai...with the execution of financing documents with the State Bank of India (SBI)", Bloomberg Quint quoted. Moreover, the Adani Group plans to commission the Navi Mumbai Airport by 2024.
India's Credit Capacity Grew Rapidly In The Last 5 Years
The sale would help the national bank boost its capital buffers as it attempts to grow loans faster rapidly after a cash crunch in 2018, which curtailed new loans from shadow finance providers. After that, India's credit capacity has grown by leaps and bounds in the last five years. The deal will add to the $11.8 billion raised through equity offerings in India over the past 12 months. While both parties have not yet finalized the terms of offerings, and the fundraising target could change, the SBI board had approved an equity offering of $2.8 billion in October last year.