GMR Hyderabad International Airport raises Rs 11.50 bn via non-convertible debentures

Hyderabad (Telangana) [India], December 14 : GMR Hyderabad International Airport (GHIAL), a subsidiary of GMR Airports, announced that it has successfully raised funds through the issuance of 10-year listed, rated, redeemable, secured non-convertible debentures (NCDs) amounting Rs 11.50 billion, on private placement basis.
The proceeds will be utilised for the partial refinancing of USD 140 million of the existing external commercial borrowings (ECB) bonds of 2024 and 2026.
A private placement -- or non-public offering -- is where a business sells corporate bonds or shares to investors without offering them for sale on the open market.
The NCDs will be listed on BSE. According to a statement from GMR Hyderabad International Airport, the NCDs have been priced at an interest rate of 8.805 per cent per annum payable quarterly for an initial period of five years and thereafter interest rate will be reset for the next five years. The issue has been subscribed by eligible investors.
The proceeds from the NCDs will be utilised for partial refinancing of USD 140 million of the existing ECB bonds of 2024 and 2026, for which tendering has been completed, along with accrued interest and other issue expenses.
Grandhi Kiran Kumar, Corporate Chairman, GMR Group, said, "We are delighted about the successful completion of this transaction. This is GHIAL's first listed transaction in the domestic debt market and the response from the investors was overwhelming...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..."