GMR Group secures Rs 6.3k cr investment from Abu Dhabi Investment Authority

Hopes for significant reduction in its pledged shares upon completion of debt deal

Hyderabad-based 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.

 

Upon completion of the deal, GMR Group said it would use the proceeds to refinance all external debt of GMR Enterprise Private Limited (GEPL), the promoter of GMR Airports Limited (GAL), formerly GMR Airports Infrastructure Limited.

 

“The Rs 6,300 crore will help address both the entire debt and the interest component at the promoter level,” said a person in the know, who did not wish to be identified.

 

Kiran Grandhi, corporate chairman of GMR Group, said: "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.”

 

Further, upon completion, the GMR promoter group’s pledge on its shareholding in GAL will reduce significantly. GEPL believes that it will be able 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.”