Moneycontrol Bureau
Shares of GMR Infrastructure gained 1.8 percent intraday Tuesday on getting funds for construction of Philippines airport project.
GMR-Megawide Cebu Airport Corporation (GMCAC) signed financing documents of its Mactan Cebu International Airport located at Cebu, Philippines, said the company in its filing, adding the financing will fund 70 percent of its total project cost of Php 33 billion (approximately USD 750 million).
GMCAC is a joint venture between GMR Infrastructure with 40 percent shareholding and Megawide Construction Corporation with 60 percent shareholding. It will be responsible for construction, development, renovation, expansion and operation of the Mactan Cebu Airport for a period of 25 years.
"The total equity contribution of GMR to GMCAC will be approximately USD 90 million, out of which GMR already invested USD 48 million and do not envisage any further investment in the near future," said the company.
GMCAC will build a brand new terminal building within three years to cater to the growing traffic. "With existing connections to tourist spots in the central and southern Philippines and with direct flights from Asian cities, it has huge untapped growth potential," GMR said.
BDO Capital and Investment Corporation acted as lead arranger to the transaction and the loan was financed by a consortium of six banks.
GMR-Megawide Consortium won the project after offering a bid premium of 14.4 billion Philippine Pesos (approximately USD 305 million) in April.
At 11:16 hours IST, the stock was quoting at Rs 17.15, up Rs 0.15, or 0.88 percent on the BSE.
Posted by Sunil Shankar Matkar
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