GMR Airports Secures Debt Facility Worth Rs 1,950 Crore From Chartered Bank, JPMorgan, Deutsche Bank, Others

GMR Airports has secured a three-year debt facility of Rs 1,950 crore from different entities according to The Economic Times Report. According to the report citing people with knowledge of the matter, entities including Chartered Bank, JPMorgan, Deutsche Bank, a Varde Partners entity, and Trust Investment have jointly provided the Rs 1,950 crore loan facility to GMR Airports.

The company is expected to use the proceeds to refinance high-cost borrowings and partly to invest in subsidiaries, said the bond documents that did not name of 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 in the form of senior unsecured bonds on November 22, the people said.

Last week, GMR Airports Limited (GAL), a prominent player in the airport infrastructure sector, accessed a substantial loan of Rs 2,475 crore through its Special Purpose Vehicle (SPV), GMR Goa International Airport Limited (GGIAL) to refinance its high-cost borrowings.

Those who funded this loan facility included JPMorgan, Tata Cleantech Capital, Aditya Birla Finance, ICICI Bank, and India Infrastructure Finance. According to media reports, GMR Airports was planning to raise Rs 1,950 crore through 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 Rs 435 crore each. Trust Investments Advisors subscribed to the remaining Rs 80 crore.

GMR Airports aims to raise Rs 5,000 crore through debentures by March 2024 and this Rs 1,950 crore is part of that borrowing plan, said one of the people cited earlier in the report. The company is expected to raise Rs 2,300 crore by the end of December and about Rs 800 crore by February 2024, as per sources.

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 remaining 51%.

The company has a Rs 1,406 crore bond due in December, which will be met through the proposed new debt funding, according to a report by Care Ratings on November 7.

The infrastructure conglomerate GMR Group has eight airport assets under operation or in various stages of development, and another one for which it has won the bid.

GMR Airports Infrastructure stock price closed 5.69 % higher at Rs Rs 60.35 per share on Friday.