Hyderabad: GMR Group on Friday said that its subsidiary GMR Hyderabad International Airport Ltd has “entered into a purchase agreement to issue and allot $350 million of 4.25 per cent senior secured fixed rate notes of 10-year tenure.”
The Bengaluru-based infrastructure group would use the proceeds to repay its existing loans and to partially fund its capital expenditure. At current exchange rate, $350 million amounts to Rs 2,275 crore.
This is the third US dollar bond offering by the GMR Group, which currently owes $3.10 billion or Rs 20,000 crore.
While this is the first US dollar bond offering by the GMR Hyderabad International Airport, its sister firm GMR-led Delhi International Airport Ltd was the first Indian company to issue seven-year and 10-year bonds in the infra space.
While 4.25 per cent loans could help GMR to reduce its high cost funds, any weakening in the rupee could upset interest savings as the offer is for dollar-denominated bonds.
