Delhi International Airport Private (DIAL), a subsidiary of GMR Infrastructure (GMR Group) announced that it has successfully raised USD 288.75 million in the international bond market.
DIAL has entered into a Purchase Agreement to issue and allot USD 288.75 million in principal amount of 6.125% senior secured fixed rate notes due 2022 (the 'Notes'). The proceeds from the Notes will be used to refinance one of the current outstanding External Commercial Borrowing (ECB).
The issuance of the Notes are pursuant to the regulations issued by the Reserve Bank of India (RBI) in relation to External Commercial Borrowing (ECB) and are under the automatic route and the amounts raised pursuant to the Notes are capped by the outstanding amount of the ECB being refinanced.
GM Rao, chairman, GMR Infrastructure said, "It gives me immense pleasure to announce the successful completion of Delhi Airport Bond Issuance. This deal marks the Group's first foray into International Bond Markets. The issuance buoyed by strong investor demand across geographies was oversubscribed many times over. That the deal has been concluded despite volatile market conditions in Europe depicts the investor confidence in India under its strong and decisive leadership and the strong credit fundamentals of GMR Group and Delhi Airport. The pricing was done at a very competitive rate and will reduce the overall financial burden on the Airport by way of interest cost reduction and repayment holiday which will increase the liquidity. This bond issuance has opened up new avenues for GMR Group to tap a wide pool of investors for our on-going and continuous financing requirements for our various projects. The initiative is reflective of our continual efforts to create value for our investors and boost liquidity within the Group."
