Delhi International Airport Private Limited, a subsidiary of GMR Airports Ltd. and GMR Infrastructure Limited, has priced $ 522.6 million in the international bond market.
DIAL entered into a Purchase Agreement to issue and allot $ 522.6 million of 6.125 per cent senior secured fixed rate notes of 10 year tenure. The proceeds from the Notes will be used to refinance the current outstanding rupee term bank loan and bank external commercial borrowing.
The issue of the Notes are pursuant to the regulations issued by the Reserve Bank of India in relation to ECB and are under the automatic route. The amounts raised are capped by the outstanding amount of the RTL and Bank ECB being refinanced.
Srinivas Bommidala, Business Chairman – Airports, GMR Group, in a statement said, “The issue has been oversubscribed by multiple times despite volatile market conditions. The successful completion of the deal underscores investor's confidence in GMR Group and strong credit of DIAL.”
“The initiative is reflective of our efforts to boost liquidity within the Group through financial innovation,” he said.
Sidharath Kapur, President–Finance and Business Development, GMR Airports Ltd, said, “The launch of the deal at initial price of 6.50 per cent and a final pricing at 6.125 per cent reflected the strength of the book and saw investment interest coming from high quality investors in Asia, Europe and USA.”
“This is the first 10 year high yield $ bond transaction from an India incorporated issuer in this format. The deal refinances entire bank term loans in DIAL and brings a long dated termed out structure ideal for infrastructure projects,” he said.