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Thursday, July 25, 2024

GMR Airports Secures Rs 1,950 Crore Funding for Debt Refinancing

GMR Airports successfully raised Rs 1,950 crore through a three-year debt facility provided by a consortium including Standard Chartered Bank, JPMorgan, Deutsche Bank, a Varde Partners entity, and Trust Investment. The funds, acquired on November 22 via senior unsecured bonds, will be utilized by GMR Airports, the holding company of airports in Delhi, Hyderabad, and Goa, to refinance high-cost borrowings and partially invest in subsidiaries.

The bond documents, not disclosing the investors’ names, outlined a coupon rate of 13.275%, consisting of a 5% cash coupon and an 8.275% redemption premium. This strategic move aligns with GMR Airports’ plan to raise a total of Rs 5,000 crore by March 2024, with Rs 1,950 crore being a part of this borrowing initiative. Notably, subsidiary GMR Goa International Airport also secured Rs 2,475 crore recently for refinancing purposes.

Key investors in the GMR Airports bonds included Varde-backed Credit Solution India Trust, Standard Chartered Singapore, JPMorgan, Deutsche Bank & Trust Investment Advisors, and Trust Investments Advisors. The company aims to raise an additional Rs 2,300 crore by the end of December and around Rs 800 crore by February 2024.

GMR Airports has a Rs 1,406 crore bond maturing in December, which will be addressed through the newly acquired debt funding. The GMR Group manages eight airport assets in various stages of development, including operational ones in Delhi, Hyderabad, Goa, and Cebu (Philippines). The group has also secured bids for airports in Bhogapuram (Andhra Pradesh), Bidar (Karnataka), Crete (Greece), and Medan (Indonesia), with the Nagpur airport bid won and awaiting project award. GMR Airport, a subsidiary of the publicly listed GMR Airports Infrastructure Ltd., is 51% owned by GMR Airport Infrastructure, with France’s Groupe ADP holding a 49% stake. Standard Chartered Bank, Deutsche Bank, and Varde declined to comment, while responses from GMR Airports, JPMorgan, and Trust Investment Advisors are pending.

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