GMR Hyderabad International Airport is set to raise Rs 2,276 crore via global bonds. In an interview to CNBC-TV18, Sidharath Kapur, President, GMR Airports discussed more about this.
This is a bond issue which makes GMR the only group in India to tap the 10-year bond market in the same infrastructure class across assets, he said.
USD 275 million from bond issue will be used for refinancing the entire bank debt and USD 75 million will be used for expansion of Hyderabad Airport, he added.
We expect savings of around 1-1.5 percent on the total cost of debt, said Kapur.
Refinancing will reduce cost of borrowing from Hyderabad entity. Hyderabad Entity has debt of around Rs 2,000 crore and it will save around Rs 40-45 crore worth of finance cost via refinancing, he further mentioned.
There is no intent to dilute the stake at Hyderabad airport below 51 percent, so we would like to retain our ownership at least at 51 percent and currently we own 63 percent, he said.[“Source-moneycontrol”]