PremiumMumbai: GMR Hyderabad International Airport Ltd, a subsidiary of GMR Airports, on Wednesday said it has ₹1,150 crore through the issuance of non-convertible debentures (NCD), which the company will use for part repayment of offshore bonds maturing in the coming years, the company said in an exchange filing.
The NCDs have been priced at an annual interest rate of 8.805%, payable quarterly for the first five years, after which the interest rate will be reset for the following five years, the company said.
The debentures will mature in 2032, according to the release. The funds raised from the NCDs will be used to partially refinance the existing ECB or external commercial borrowing bonds of 2024 and 2026, for which tendering has ended, as well as accumulated interest and other issue fees, for a total of about $140 million.
“This is GHIAL’s (GMR Hyderabad International Airport) first listed transaction in the domestic debt market and response from the investors was overwhelming. The offering through GHIAL was subscribed by eligible Investors i.e. QIBs. This shows the confidence of investor in our ability to raise funds from the Domestic Market and reflects our continued effort to create value for our investors. The successful pricing of the offering underscores investors' confidence in GMR Group and credit strength of GHIAL," said Grandhi Kiran Kumar, corporate chairman, GMR Group said.
GMR Airports Limited, a subsidiary of GMR Airports Infrastructure Limited, has Groupe ADP as its strategic partner, and it owns a 49% share in the company.
Shares of GMR Airports Infrastructure were trading 0.12% lower at ₹43.35 on the National Stock Exchange.
GMR Airports Ltd and National Investment and Infrastructure Fund had earlier this month announced a financial partnership under which NIIF will invest in three airport projects. The investment by NIIF will include ₹631 crore in the greenfield international airport at Mopa, Goa.