New Delhi: GMR Group said on Wednesday that it has acquired Rs 6,300 crore in debt capital from the Abu Dhabi Investment Authority (ADIA), with the proceeds used to refinance debt of its promoter group entity GMR Enterprises Pvt Ltd (GEPL).
Upon completion, GMR Group will use the transaction proceeds to refinance all external debt of GEPL, the promoter of GMR Airports Ltd. GMR Group shared in a statement. Also, once completed, the GMR promoter group's pledge on its shareholding in GAL will be drastically reduced, according to a statement shared by GMR.
The statement further reveals that the cash will allow GEPL to consolidate various lenders into a single source of capital. G M Rao controls GEPL, a promoter group firm.
GMR Group Reduces Debt, Strengthens Airport Platform with ADIA Investment
GMR Group Corporate Chairman Kiran Grandhi revealed that in recent years, the company has successfully decreased a large amount of corporate debt.
"We have also separated GMR Power and Urban Infra Ltd from GMR Airports Infrastructure Ltd, and amalgamated GMR Airports Ltd and GMR Airports Infrastructure Ltd to become GMR Airports Ltd (GAL), a pure play, publicly traded airport platform. This ADIA investment will help GEPL repay all foreign debt, enhancing our ability to support GAL's continuing expansion," Kiran Grandhi stated.
Khadem AlRemeithi, Executive Director of ADIA's Infrastructure Department shared that India's aviation sector has significant growth possibilities, which are supported by the Indian economy's good long-term fundamentals.
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"This investment aligns with our approach of backing entities which are developing world-class transport assets that benefit from demographic growth and increased economic connectivity," Khadem AlRemeithi said, according to PTI.
GEPL is the promoter of GMR Airports Ltd (GAL). The group manages three airports in India (Delhi, Hyderabad, and Goa), as well as two in the Philippines and Indonesia. GMR Group stated in a release that it has signed a deal with a wholly-owned subsidiary of ADIA to invest Rs 6,300 crore in GEPL's structured loan instruments.The transaction is subject to certain conditions and regulatory clearances.
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