Alternative asset manager Apollo has invested US$750 million in senior secured private placement notes from Mumbai International Airport Limited (MIAL), in a deal highlighting the current strong demand for large-scale infrastructure debt transactions.

New York Stock Exchange-listed Apollo says the deal was done via its credit funds. MIAL is an Adani portfolio entity that owns and operates Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, the second-largest airport in India. Adani holds a 74% stake in MIAL.

Allen and Overy and Cyril Amarchand Mangaldass acted as legal advisers to MIAL for the issuance, while Linklaters and Talvar Thakore and Associates acted as legal advisers to the Apollo funds. Fitch Ratings has assigned an expected rating of BB+ (Exp); the outlook is stable.

Apollo says its credit business was able to provide a scaled, long-term capital solution for MIAL, with a majority of the proceeds from the seven-year notes to be used to refinance existing shorter-maturity loans and new capital expenditure.

“We are pleased to work with the Adani’s to provide a comprehensive, long-term capital solution for the Mumbai International Airport, a mission-critical infrastructure asset in India,” comments Brigitte Posch, Apollo partner and global head of emerging market debt.

“Amid significant market volatility, our ability to commit to the entire transaction, and take a long-term view, reflects some of the key strengths of Apollo’s global credit platform and perpetual capital base," she adds.

Over the last 12 months, Apollo has provided more than US$1 billion of capital commitments in India, and the transaction builds on the momentum across the broader Asia-Pacific region, including strategic investments in FWD Insurance (Hong Kong) and Challenger (Australia).

Apollo focuses on three business strategies: yield, hybrid, and equity. As of December 31 2021, Apollo had US$498 billion of assets under management.