Hyderabad airport operator GHIAL will raise $300 million (about Rs 2,190 crore) by issuing bonds in overseas market to fund its expansion plans, the GMR group said on Wednesday. The airport is targeting to raise its capacity to 34 million passengers per annum.
"GMR Hyderabad International Airport Limited (GHIAL) announced that it had on January 26, 2021, successfully priced an offering of $300 million bonds in the international bond market," GMR group said in a statement. Hyderabad airport is run by GHIAL, where the GMR group holds 63 per cent stake. The airport handled around 21 million passengers in 2020.
"GHIAL has entered into a Purchase Agreement to issue and allot $300 million 4.75 per cent senior secured notes of 5-year tenure (the 'Notes')," the group said. The proceeds will be used towards the capital expenditure with respect to the master plan (expansion) of Rajiv Gandhi International Airport at Hyderabad, to increase the capacity to 34 million passengers per annum, it noted."The successful pricing of the offering underscores investors' confidence in GMR Group and credit strength of GHIAL," Grandhi Kiran Kumar, Corporate Chairman, GMR Group, said.