GMR Gears Up for Fourth Airport with Mega Loan Deal

GMR Visakhapatnam International Airport is set to embark on the development of its fourth airport in India, having secured a substantial term loan of Rs 3,215 crore from a consortium of five esteemed lenders. The consortium, led by REC, has demonstrated its confidence in the project, with REC contributing the highest amount of Rs 1,245 crore, followed by India Infrastructure Finance Company (IIFCL) providing Rs 860 crore and Exim Bank extending Rs 455 crore in financial support.

The remaining two members of this consortium, Central Bank of India (CBI) and Bank of Maharashtra (BoM), have contributed Rs 364 crore and Rs 291 crore, respectively. The overall project cost is estimated at Rs 4,727 crore, with funding structured through a combination of Rs 3,215 crore in debt, equity and equity-linked instruments amounting to Rs 1,377 crore, and a grant of Rs 135 crore from the Andhra Pradesh government.

The term loan spans a duration of 18 years, encompassing the initial three-year construction period and a one-year moratorium. GMR Airport holds a 51 percent stake in GMR Visakhapatnam International Airport, with the National Investment and Infrastructure Fund owning the remaining 49 percent.

In addition to the forthcoming venture, GMR Airports currently manages operations at major airports in India, including Delhi, Hyderabad, and Goa. The company also oversees airports in the Philippines and Indonesia, reinforcing its significant presence in the aviation sector across multiple countries.

News by Rahul Yelligetti