GMR Group Secures Investment from ADIA for Debt Refinancing
GMR Group, a Hyderabad-based infrastructure conglomerate, announced an agreement with Abu Dhabi Investment Authority (ADIA), the UAE's sovereign wealth fund, for an investment of Rs 6,300 crore in structured debt instruments. This investment will be utilized for refinancing the outstanding external debt of GMR Enterprise Private Limited (GEPL), the parent company of GMR Airports Limited (GAL).
The investment by ADIA will be made in a unit of GMR Enterprises, which holds a 25% stake in GMR Airports. This strategic move will strengthen GMR Group's financial position and support the continued growth of GAL, a leading airport operator in India.
"Over recent years, we have successfully reduced a significant quantum of corporate debt," said Kiran Grandhi, Corporate Chairman of GMR Group. "This investment from ADIA will facilitate the repayment of all external debt at GEPL, strengthening our ability to support the continued growth of GAL."
Khadem AlRemeithi, Executive Director of the Infrastructure Department at ADIA, commented on the investment, stating, "India's aviation sector has strong growth prospects, backed by the positive long-term fundamentals of the Indian economy, while GMR Group is one of the country's leading airport operators. This investment aligns with our approach of backing entities which are developing world-class transport assets that benefit from demographic growth and increased economic connectivity."
GMR Enterprises' total debt had increased by nearly 4% year-on-year to 44.77 billion rupees ($532.5 million) as per its latest annual report. This investment from ADIA will significantly improve the company's financial health and position it for future growth.