ADIA to invest $750 mln in debt of India's GMR Group (updated)
23/10/2024 10:25
(Recasts throughout, adds details on investment, background on
aviation industry)
Oct 23 (Reuters) -
Abu Dhabi Investment Authority (ADIA), the UAE's largest
sovereign wealth fund, will invest about $750 million in the
debt of India's GMR Group, giving it a foothold in one of the
world's fastest-growing aviation markets.
The investment will also allow the Indian company to
reduce the pledged shareholding on its airports business.
ADIA has invested in structured debt instruments of a unit
of GMR Enterprises (GEPL), the holding company of GMR Group. GMR
Enterprises owns a roughly 25% stake in GMR Airports GMRI.NS .
The funds will be used to refinance all external debt of GMR
Enterprises, which is looking to lower its pledge on the
shareholding of GMR Airports "significantly", GMR Group said in
an exchange filing.
GMR Enterprises' total debt had increased nearly 4%
year-on-year to 44.77 billion rupees ($532.5 million), according
to its latest annual report.
"This investment from ADIA will facilitate the repayment of
all external debt at GEPL, strengthening our ability to support
the continued growth of GMR Airports," said GMR Group Corporate
Chairman Kiran Grandhi.
India's domestic passenger traffic is expected to double to
300 million by 2030.
($1 = 84.0700 Indian rupees)
(Reporting by Yagnoseni Das and Meenakshi Maidas in Bengaluru;
additional reporting by Hritam Mukherjee, Nandan Mandayam;
Editing by Sonia Cheema)
((Yagnoseni.Das@thomsonreuters.com;))