GMR's Goa Airport Secures Rs 2,475 Crore Debt Funding From JP Morgan, Tata, Among Others

JP Morgan, Tata Cleantech Capital, Aditya Birla Finance, ICICI Bank, and India Infrastructure Finance Company Ltd (IIFCL) have extended a debt facility of Rs 2,475 crore to GMR Goa International Airport Ltd (GGIAL).

GGIAL is a special-purpose vehicle of GMR Airports Ltd established for the construction and operation of the new airport in Goa.

It is set to utilise the funds for refinancing existing debt and supporting ongoing capital expenditure initiatives, according to sources familiar with the matter.

The Manohar International Airport Project is based on the public-private partnership model, on a design, build, finance, operate and transfer basis.

Key contributors to the bond subscription include ICICI Bank (Rs 600 crore), IIFCL (Rs 500 crore), JP Morgan Securities (Rs 400 crore), JP Morgan Securities Asia (Rs 375 crore), Aditya Birla Capital, and Tata Cleantech (both lending Rs 300 crore each).

Proceeds from the bonds, totalling Rs 1,520 crore, will be allocated for various purposes, including the repayment of term loans, subordinated debt, sponsors' debt, and the capital expenditure of phase-2 in the construction of the airport, as outlined in the bond documents available at the Bombay Stock Exchange, reports Economic Times.

GMR Group manages nine airport assets, including operations in Delhi and Hyderabad through separate special purpose vehicles.

Apart from being one of the largest private airport companies in India, GMR Group is also the only Indian airport developer to have developed and operated airports outside India. 

The recently operational airport in north Goa, Mopa airport, built on 2,132 acres, is set to handle a significantly higher number of passengers compared to the existing Dabolim airport in central Goa.

The Mopa airport has a phased development plan, with a current capacity to handle 4.4 million passengers annually and a saturation capacity of approximately 33 million passengers per year.

In addition to the Goa projects, GMR is actively involved in the construction of an airport in Bhogapuram, Andhra Pradesh, and is progressing with developments in Greece and Indonesia.

Furthermore, the company is in the process of raising Rs 5,000 crore to refinance its outstanding debt, according to a report by Care Ratings on 7 November.

GMR Airports is a subsidiary of GMR Airports Infrastructure Ltd, with Groupe ADP holding a 49 per cent stake, and GMR Airport Infrastructure holding the majority 51 per cent.

GMR has the option to call back the bonds between December 2028 and March 2029, with a corresponding put option available in March 2029, as indicated in the bond documents.

The call option grants GMR the right to repurchase the bonds at a predetermined price, while the put option allows bondholders to seek an early exit.

The debt refinancing initiative also encompasses the settlement of outstanding debt owed to the National Investment and Infrastructure Fund, which injected Rs 631 crore in December 2022 through compulsory convertible bonds.