GMR Hyderabad International Airport Limited (GHIAL), a subsidiary of GMR airports, India has raised funds through the issuance of 10-year listed, rated, redeemable, secured non-convertible debentures (NCDs) amounting to INR 11.5 bn on a private placement basis. The company will use these funds 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 interest rate of 8.805% per annum payable quarterly for an initial period of five years and thereafter the interest rate will be reset for the next five years.
Commenting on the deal, Grandhi Kiran Kumar, Corporate Chairman of GMR Group said: "This is GHIAL's 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 investors 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 the credit strength of GHIAL.
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.
The NCDs which were raised on December 13, 2022, will be listed on the Bombay Stock Exchange, GHAIL said in a statement.
GMR Airports and National Investment and Infrastructure Fund (NIIF) had earlier this month announced a financial partnership under which NIIF will invest in three airport projects.