Key Points
- GMR Group raises ₹6300 crore from Abu Dhabi Investment Authority.
- Funds will refinance loans from non-banking finance companies.
- Transaction subject to regulatory approvals.
- Reduces debt servicing pressure and shareholding pledge.
- GMR operates six airports, including Delhi’s busiest.
Looma News
GMR Group has secured an eight-year zero-coupon loan of ₹6300 crore from the Abu Dhabi Investment Authority (ADIA). This money will refinance several short-term loans taken from non-banking finance companies by a main business entity. The deal depends on certain conditions and regulatory approvals.
The funds will be used to pay off all external debt of GMR Enterprise Private Limited, which is the parent of GMR Airports Limited. This refinancing will lower finance costs and ease debt repayment pressure. It will also reduce the promoter group’s pledge of shares in GMR Airports Limited (GAL).
GMR Group runs six airports in India and abroad, including the busiest airport in Delhi. Recently, the group increased its stake in Delhi airport to 74 percent by buying a 10 percent share from Fraport. GMR’s corporate chairperson, Kiran Grandhi, mentioned that the group has cut corporate debt significantly in recent years, and the investment from ADIA will help support growth in the airport sector.
Khadem AlRemeithi, executive director of ADIA’s infrastructure department, highlighted that India’s aviation sector has great growth potential, backed by strong long-term economic trends. He noted that GMR Group, as a top airport operator, fits ADIA’s strategy of investing in companies developing world-class transport assets that benefit from demographic growth and enhanced economic connections.
