Logistics

GVK achieves financial closure for Navi Mumbai airport

V Rishi Kumar Hyderabad | Updated on July 08, 2018 Published on July 08, 2018

YES Bank to be lead manager for Phase I, II

GVK Power and Infrastructure Ltd has achieved financial closure for Navi Mumbai International Airport Pvt Ltd.

GVK-led Navi Mumbai International Airport Pvt Ltd had inked the concession agreement for the greenfield airport project on January 8, 2018. The agreement was inked between Navi Mumbai International Airport Pvt Ltd and City and Industrial Development Corporation of Maharashtra Ltd (CIDCO).

GVK Reddy, Executive Chairman of Mumbai International Airport Ltd and Navi Mumbai International Airport Pvt Ltd, in a statement filed with the BSE, said, “We have achieved the financial closure on schedule. This will now enable us to focus on the next steps, which is the construction and completion of the first phase of yet another landmark airport project in India.”

YES Bank Ltd is the lead bank and mandate lead manager for Phase I and Phase II of the Navi Mumbai Airport project.

Navi Mumbai International Airport Pvt Ltd is the special purpose vehicle (SPV) for the execution of the new greenfield airport project. This is the step down subsidiary that has achieved financial closure for the project.

Completion of financial closure on July 7, 2018 is considered as the appointed date in terms of the concession agreement signed with CIDCO. The new airport would be one of the biggest such investments in the country and is likely to see an investment of about Rs 16,000 crore.

GVK had earlier developed the new airport at Mumbai and also held a stake in Bangalore International Airport project. However, the company had sold its stake in the Bangalore project to Prem Watsa promoted Fairfax Holdings.

Published on July 08, 2018
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