Money & Banking

GMR places $300 m through bond offer for Hyderabad airport expansion

Our Bureau. Hyderabad | Updated on January 27, 2021

GMR Hyderabad International Airport Limited (GMRHIAL) has successfully priced $300-million bond in the international bond market through a purchase agreement.

As per the agreement, it will issue and allot $300 million worth 4.75 per cent senior secured notes of five-year tenure.

GMRHIAL is a subsidiary of GMR Airports Limited and a step down subsidiary of GMR Infrastructure Limited (GMR Group),

The proceeds from the notes will be used towards the capital expenditure for the expansion of Rajiv Gandhi International Airport at Hyderabad, increasing the capacity of the airport to 34 million passengers per annum.

Grandhi Kiran Kumar, Corporate Chairman, GMR Group, said: “We are delighted on the successful pricing of this transaction. The offering through GHIAL reinforces our ability to raise funds from the international bond markets and reflects our continued effort to create value for our investors and raise capital for growth. The successful pricing of the offering underscores investors’s confidence in GMR Group and credit strength of GHIAL.”

GHIAL is promoted by the GMR Group (63 per cent), in partnership with Airports Authority of India (13 per cent), Government of Telangana (13 per cent), and Malaysia Airports Holdings Berhad Group (11 per cent).

RGIA was commissioned in 2008 with an initial capacity of 12 million passengers per annum (MPPA) and 150,000 tonnes of cargo handling capacity per annum. The project has the flexibility to increase capacity, and is currently being expanded to accommodate over 34 MPPA.

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Published on January 27, 2021
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