NEW DELHI: Infra major GMR Group on Wednesday said it has entered into an agreement with a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) for an investment of Rs 6,300 crore in the form of structured debt instruments, allowing the former to reduce its pledged shareholding on its airports business. The group will use this money to refinance all external debt of GMR Enterprise Pvt Ltd (GEPL), the promoter of GMR Airports Ltd (GAL). ADIA is UAE's largest sovereign wealth fund.
Kiran Grandhi, corporate chairman of GMR Group, said: “This investment from ADIA will facilitate the repayment of all external debt at GEPL, strengthening our ability to support the continued growth of GMR Airports. Over recent years, we have successfully reduced a significant quantum of corporate debt. This investment from ADIA will facilitate the repayment of all external debt at GEPL, strengthening our ability to support the continued growth of GAL.”
The GMR promoter group’s pledge on its shareholding in GAL will reduce significantly once this deal is complete. GEPL plans to consolidate multiple lenders into a single source of capital through this exercise.
Khadem AlRemeithi, executive director of the infrastructure department at ADIA, said: “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.”
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