Hyderabad-based GMR Group on Wednesday mentioned it has entered into an settlement with Abu Dhabi Funding Authority (ADIA), the UAE’s largest sovereign wealth fund, for an funding of Rs 6,300 crore within the type of structured debt devices.
ADIA has invested in structured debt devices of a unit of GMR Enterprises (GEPL), the holding firm of GMR Group. GMR Enterprises owns a roughly 25% stake in GMR Airports.
Upon completion of the deal, GMR Group introduced its intention to make the most of the funds for the refinancing of all excellent exterior debt of GMR Enterprise Non-public Restricted (GEPL), the mother or father firm of GMR Airports Restricted (GAL), beforehand often known as GMR Airports Infrastructure Restricted.
“Over current years, we now have efficiently decreased a big quantum of company debt. We’ve additionally demerged GMR Energy and City Infra Restricted from GMR Airports Infrastructure Restricted, and merged GMR Airports Restricted with GMR Airports Infrastructure Restricted to kind GMR Airports Restricted, a pure play, publicly listed airport platform. This funding from ADIA will facilitate the reimbursement of all exterior debt at GEPL, strengthening our capacity to help the continued progress of GAL,” mentioned Kiran Grandhi, Company Chairman, GMR Group.
“India’s aviation sector has sturdy progress prospects, backed by the optimistic longterm fundamentals of the Indian financial system, whereas GMR Group is among the nation’s main airport operators. This funding aligns with our strategy of backing entities that are growing world class transport belongings that profit from demographic progress and elevated financial connectivity,” mentioned Khadem AlRemeithi, Government Director of the Infrastructure Division at ADIA.
GMR Enterprises’ whole debt had elevated practically 4% year-on-year to 44.77 billion rupees ($532.5 million), in line with its newest annual report.
