Monday, March 30, 2020

Deal to sell 49% in GMR Airports on track, says GMR Group

New Delhi: The GMR group today said that funding plan in its subsidiary – GMR Airports Ltd (GAL) – is on track despite the uncertain economic conditions, as its French partner has raised money through bonds to honour the payment plan.
In February 2020, GMR Group had signed an agreement with France’s Groupe ADP to divest 49% stake in GAL for an equity consideration of Rs 10,780 crore.
“Groupe ADP of France has successfully raised Euro 2.5 billion in bonds in two-parts. The two-part bonds having different maturity have been priced at effective interest rate of 2.125% and 2.75%, respectively. The bonds were over-subscribed by more than five times. This raising plan ensures that the payment plans remain intact,” said a company executive, who did not want to be identified.
The executive added that over-subscription of bonds in current economic scenario is also a testimony of faith international investors have in Groupe ADP, a global airport developer and operator.
As part of the deal, the group has already received the first tranche of Rs. 5,248 crore, which was utilised to deleverage the group and improve cash flow and profitability.
30/03/20 Mihir Mishra/Economic Times
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