GMR group company turns to overseas bond market to fund airport project

GMR Hyderabad International Airport Limited, a GMR group company, Thursday said it is raising 300 million dollars from the overseas bond market for use in the expansion of Rajiv Gandhi International Airport here. According to a press release issued by the infra major, the GHIAL has entered into a Purchase Agreement to issue and allot USD 300 million-5.375 per cent senior secured notes of 5-year tenure.

"We are delighted on the successful pricing of this transaction, said Grandhi Kiran Kumar, the Corporate Chairman of GMR Group. The offering through GHIAL reinforces our ability to raise funds from the International Bond Markets and reflects our continued effort to create value for our investors and raise capital for growth. The successful pricing of the offering underscores investors' confidence in GMR Group and credit strength of GHIAL", the release said.

Fitch Ratings recently said GHIAL's FY18 passenger traffic was at 18.3 million and expected the traffic to grow strongly because India is an emerging economy with an increasing propensity to fly.

(With inputs from agencies.)