Infrastructure conglomerate GVK Power and Infrastructure has signed an agreement to sell 49 per cent stake in its airports business to Abu Dhabi Investment Authority (ADIA) and National Investment and Infrastructure Fund (NIIF).
ADIA is the world's second largest sovereign wealth fund while NIIF is India's first sovereign wealth fund set up by the government in 2015.
Both have signed a term sheet and exclusivity agreement with GVK Power and Infrastructure's step-down subsidiaries GVK Airport Developers and GVK Airport Holdings.
GVK had initiated the process to identify and select preferred investors to raise capital to reduce or refinance debt obligations of up to Rs 5,750 crore.
"All proceeds from the proposed transaction will be used by GVK towards retiring debt obligations," it said in a statement.
GVK Chairman G V Krishna Reddy said: "The funds brought in through this proposed transaction will help us deleverage as we continue with our endeavours to create the infrastructure for a strong aviation hub in India that will provide the impetus for growth and development for the entire country."
He said the future focus will be on delivering Navi Mumbai International Airport, successfully monetising Mumbai airport's real estate and building a strong airports business at GVK.
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