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GMR Airports secures Rs 2,475 crore loan for Goa project expansion

EditorPollock Mondal
Published 23/11/2023, 12:14
© Reuters.

GMR Airports Limited (GAL), a prominent player in the airport infrastructure sector, has accessed a substantial loan of Rs 2,475 crore through its Special Purpose Vehicle (SPV), GMR Goa International Airport Limited (GGIAL). The funds are earmarked for the second phase expansion of its Goa project and to refinance existing debts.

The financing comes at a time when the company is actively finalizing funding arrangements for the nearly Rs 4,800 crore Bhogapuram airport project. GMR has already made significant progress with the recent inauguration of operations at the new north Goa site since January.

In a strategic move to optimize its financials, GMR is on a drive to raise Rs 5,000 crore to refinance all outstanding debt. It has successfully secured Rs 1,900 crore towards this ambitious target. The company's portfolio includes nine ongoing projects, among them the management of Delhi and Hyderabad airports, and it has recently won contracts to operationalize Bidar's civilian hub and modernize Nagpur's facility.

JP Morgan is among the financiers supporting GGIAL's latest financial endeavor. This backing will enable GGIAL to address the burgeoning traffic at Mopa airport in Goa as part of phase one's growth needs. Groupe ADP holds a significant stake in GMR Airports Ltd, which manages these projects under the Public-Private Partnership (PPP) model through various SPVs.

Care Ratings highlighted on November 7, 2023, that GMR's plan to amass Rs 5,000 crore for refinancing was well underway. The strategy includes sponsors' debt repayment associated with the airport's phase two expansion and managing put option terms for bondholders due in March 2029 while also addressing previous liabilities with the National Investment and Infrastructure Fund (NIIF).

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