India’s GMR Airports is set to raise funds via its longest-tenor bond issue before the end of this month, three sources aware of the developments said on Tuesday.
The airport operator aims to raise around 22 billion rupees ($245 million) through the sale of bonds maturing in 15 years, the sources said, requesting anonymity as the talks are still private.
The proceeds will be used to refinance debt of another group entity, GMR Hyderabad International, and for general corporate purposes, one of the sources said.
GMR Airports did not respond to a Reuters email seeking comment.
The company, which manages multiple airports in the country, including those in Delhi and Hyderabad, has been refinancing the expensive foreign-currency borrowings with local debt for some time and is expected to continue doing so.
Past fundraise
Local funding for GMR Airports has also become cheaper after Abu Dhabi Investment Authority last year invested around 63 billion rupees in structured debt of GMR Enterprises, the holding company of GMR Group, according to merchant bankers.
In August, the company had raised an aggregate of 59 billion rupees through bonds maturing in 18 months and in three years, at an annual coupon of 10.50% on both tenors.
GMR Airports’ bonds are rated A by Crisil.
