GMR group has secured eight year zero coupon ₹6300 crore debt from Abu Dhabi Investment Authority (ADIA) to refinance multiple short tenor loans raised from non-banking finance companies by a promoter group entity.

The transaction is subject to certain conditions precedent and regulatory approvals. The group will use the proceeds to refinance all external debt of GMR Enterprise Private Limited, the promoter of GMR Airports Limited, it said today.

The refinance will ease finance costs for the group and its debt servicing pressure. It will also result in the reduction of the promoter group’s pledge of its shareholding in GMR Airports Limited (GAL).

France’s Groupe ADP owns 49 per cent stake in GMR group’s airport sector business. The GMR group operates six airports in India and overseas, including the country’s busiest facility in Delhi. In September GMR group increased its stake in Delhi airport to 74 per cent, purchasing 10 per cent stake held by Fraport.

GMR group’s corporate chairperson Kiran Grandhi said that over recent years the group has successfully reduced a significant quantum of corporate debt and this investment from ADIA will strengthen its ability to support the continued growth of airports business.

“India’s aviation sector has strong growth prospects, backed by the positive long-term fundamentals of the Indian economy, while GMR Group is one of the country’s leading airport operators. This investment aligns with our approach of backing entities which are developing world class transport assets that benefit from demographic growth and increased economic connectivity,” said Khadem AlRemeithi, executive director of the infrastructure department at ADIA. 

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