Monday, June 05, 2017

GMR Infra says funding for Goa airport wrapped up; likely to refinance H'bad debt via bonds

GMR Infrastructure has sewn up the funding needed for the construction of a new airport at Mopa in Goa and will announce it soon, according to Madhu Terdal, the Chief Financial Officer of the airport-to-power conglomerate. A special purpose vehicle of the company, GMR Goa International Airport, is expected to set up the public private partnership project by May 2020.

"The financial documents have been sent to the Airports Authority of India for the approval. So, once the approval comes and some other approvals are awaited, we will be achieving financial closure. But, otherwise, GMR is ready to announce financial closure," he said.

The total capital expenditure for the Mopa airport is Rs 1,900 crore in Goa, to be funded on a 70:30 debt:equity ratio.

“It has already been fully under-written; entire debt of Rs 1400 crore-Rs 1,500 crore has been under-written by the banks,” Terdal said.
The infrastructure group won the bid in August 2016 to develop Goa’s second airport . The airport operator will enjoy the rights for 40 years, extendable by 20. The company will get 232 acres of land to build the north Goa airport and exploit the real estate for commercial development.