GMR Airports Eyes Rs 60 Billion Bond Issue to Refinance Debt and Fuel Expansion

GMR Airports Ltd is preparing to raise up to Rs 60 billion through a rupee-denominated bond issuance, marking its largest-ever local currency offering. The move comes amid falling borrowing costs and rising investor appetite for infrastructure debt.

Key Highlights

- The proposed bonds will carry a tenure of 18 months to three years, with indicative pricing around 10.5 percent.

- Proceeds will primarily be used to refinance Rs 3,906 crore in outstanding bonds and fund upcoming repayments due in December 2025.

- Additional capital may support investments in subsidiaries and the Bhogapuram airport project in Andhra Pradesh.

Strategic Context

- The fundraising aligns with GMR’s broader restructuring efforts and its ambition to list the airport business as a standalone entity.

- Delhi International Airport Ltd, a GMR unit, is also planning a separate Rs 10 billion bond issue.

- Recent upgrades by CARE Ratings reflect improved financial flexibility and sectoral recovery.

Sources: Economic Times, Business Standard, Bloomberg, BW Businessworld.