GMR Airports raises Rs 1,950 cr for three years to refinance debt

MUMBAI: Standard Chartered Bank, JPMorgan, Deutsche Bank, a Varde Partners entity and Trust Investment jointly provided a Rs 1,950-crore, three-year debt facility to GMR Airports, people with knowledge of the matter said.

GMR Airports, the holding company of the airports in Delhi, Hyderabad and Goa, will use the proceeds to refinance high-cost borrowings and partly to invest in subsidiaries, said the bond documents that did not name the investors. The coupon rate of 13.275% comprised 5% as cash coupon and 8.275% as redemption premium, the documents stated.

The funds were raised on November 22 in the form of senior unsecured bonds, the people said.

Last week, subsidiary GMR Goa International Airport raised Rs 2,475 crore from JPMorgan, Tata Cleantech Capital, Aditya Birla Finance, ICICI Bank and India Infrastructure Finance to refinance its high-cost borrowings, as reported by ET on November 23. ET reported on November 20 that GMR Airports was planning to raise Rs 1,950 crore via bonds.

Varde-backed Credit Solution India Trust and Standard Chartered Singapore subscribed to Rs 500 crore each of GMR Airports bonds; while JPMorgan and Deutsche Bank & Trust Investment Advisors subscribed to ?435 crore each. Trust Investments Advisors subscribed to the remaining ?80 crore.

GMR Airports plans to raise Rs 5,000 crore by March 2024 and this Rs 1,950 crore is part of that borrowing plan, one of the people cited above said. The company is likely to raise Rs 2,300 crore by end of December and about ?800 crore by February 2024, the person said.Standard Chartered Bank, Deutsche Bank and Varde declined to comment. GMR Airports, JP Morgan and Trust Investment Advisors did not respond to ET’s request for comments.GMR Airports has a Rs 1,406 crore bond due in December, which will be met through the proposed new debt funding, a report by Care Ratings on November 7 said, while assigning a Care A- rating for the company’s Rs 5,000 crore bonds.

The GMR Group has eight airport assets under operation or in various stages of development, and another one for which it has won the bid. Of these, Delhi, Hyderabad, Goa and Cebu in the Philippines are operational while Bhogapuram (Andhra Pradesh), Bidar (Karnataka), Crete (Greece) and Medan (Indonesia) are under development. It has won the bid for the Nagpur airport but is yet to be awarded the project.

GMR Airport is a subsidiary of the stock listed GMR Airports Infrastructure Ltd. France’s Groupe ADP holds a 49% stake in the company, while GMR Airport Infrastructure owns the balance 51%.


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