GMR Airports Boosts Cargo City Project with Rs 750 Crore Loan

GMR Airports' subsidiary, GCLL, has secured a Rs 750 crore term loan from Axis Bank to fund the cargo city project at Delhi's Indira Gandhi International Airport. The loan is secured via a Sponsor Support Undertaking and a 51 percent share pledge, ensuring the project's progression and risk mitigation.

GMR Airports is propelling its cargo city project forward by securing a significant term loan facility. GMR Cargo and Logistics Ltd. (GCLL), a subsidiary of the company, has obtained Rs 750 crore from Axis Bank. This financial injection is intended to cover part of the development costs for the cargo complex situated at Delhi's Indira Gandhi International Airport, a venture involving 50.5 acres of land.

The Delhi International Airport Ltd (DIAL), operating under GMR Airports, oversees the development. The agreement was established with Axis Bank, backed by a Sponsor Support Undertaking. This ensures the provision of approximately 51 percent shares of GCLL as security via both Non-Disposal Undertakings and pledged shares.

The arrangement guarantees financial stability for the project's progression. GMR Airports commits to infusing additional funds if necessary. This commitment will be upheld throughout the first phase of construction and into a year of operational activities, should GCLL encounter any cost overruns or repayment issues.

(With inputs from agencies.)