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GMR Airports’s international partner, Groupe ADP of France, has raised €2.5 billion in bonds in two-parts.
In February, the GMR Group had signed a Share Purchase Agreement with Groupe ADP to divest 49 per cent stake in GMR Airports Ltd (GAL) for an equity consideration of ₹10,780 crore.
The two-part bonds having different maturity have been priced at effective interest rate of 2.125 per cent and 2.75 per cent, respectively. The bonds were over-subscribed by more than five times.
The over-subscription of bonds in the current economic scenario is the testimony of the faith international investors have in Groupe ADP, as global airport developer and operator.
The deal valued GAL at ₹22,000 crore. The GMR Group has already received the first tranche of ₹5,248 crore, which was utilised to deleverage the Group and improve cash flow and profitability.
Groupe ADP had also pegged earn-outs up to ₹4,475 crore linked to achievement of certain agreed operating performance metrics as well as on receipt of certain regulatory clarifications over the next five years.
The total valuation, assuming all above earn-outs are successfully consummated, may reach ₹26,475 crore on Post Money Basis, according to GMR.
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