GMR Goa airport seeks Rs 2,480 crore via NCD issue
GMR Goa International Airport is looking to raise ₹2,480 crore by issuing non-convertible debentures to repay existing debt and fund capex. The securities have a tenor of five years and will be raised at 10.25%.
JP Morgan will help raise the debt.
The paper is rated BBB+ by Care Ratings and has a call option after three years.
Proceeds of the paper will be used to repay the existing senior debt of ₹1,520 crore, repay the external subordinated debt of ₹227 crore, repay the group-level debt of ₹269 crore and fund capex, according to an indicative term sheet seen by ET.
GMR Goa International Airport, which is a 100% subsidiary of GMR Airports, is a special purpose vehicle (SPV) set up to establish the greenfield international airport at Mopa in the northern part of Goa, on a design, build, finance, operate and transfer basis.
The cumulative traffic at Mopa airport has crossed the 1.9 million mark as of July 31. GMR Group operates airports in Delhi and Hyderabad apart from Goa.
GMR Airports won the bid for developing, operating and maintaining the greenfield airport in Mopa under a 40-year concession agreement and is extendable by 20 years subject to a re-bid, according to a Crisil report.
The airport's first phase is expected to be implemented at a cost of ₹2,615 crore and will have an operating capacity of 4.4 million passengers and a shell capacity of 7.7 million passengers.
The company's board has approved the raising of up to ₹5,000 crore in one or more tranches, through the issue of securities including a qualified institutional placement or foreign currency convertible bonds as per a filing of the company on exchanges earlier this month.
