Monday, October 23, 2017

GMR to spend $75 mn of bond money on Hyderabad airport expansion

Hyderabad: GMR Hyderabad International Airport Limited(GHIAL) will utilise $75 million (close to Rs 490 crore) out of the total $350 million (Rs 2,276 crore) that it has raised in the international bond market on capital expenditure for the airport expansion. The rest of the proceeds will be used to refinance the existing debt.

GMR Airports Limited president Sidharath Kapur on Monday elaborated on the fund utilisation plan of the subsidiary company after broadly indicating the purpose of $350 million bonds issue couple of days ago.

While the exact capex requirement was not yet spelt out by the company pending regulatory approvals for the proposed airport expansion plan, the allocation of $75 million comes as a first move towards the stated purpose.

The India Ratings & Research, a Fitch group company, earlier this year estimated that it may require about Rs 2,500 crore to expand the capacity to 20 million passengers per annum from the present 12 million, a level the actual passenger traffic had surpassed by a huge margin last year itself
23/10/17 Business Standard