India’s GMR Airports finalises details of its biggest bond issue, sources say

MUMBAI: India’s GMR Airports has finalised the terms of what would be its biggest corporate debt issue as it aims to raise more than 60 billion rupees ($685.13 million), three sources aware of the developments said on Thursday.

The country’s second-largest airport operator will raise 18 billion rupees through the sale of 18-month bonds. This issue is largely expected to be placed with mutual funds.

It will also raise around 42 billion rupees through the sale of three-year bonds, with large foreign lenders set to absorb this supply.

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The company will pay an annual coupon of 10.50% on both the maturities, and the fundraising would be completed in the next few days, the sources added.

All the sources requested anonymity as the talks are still private.

GMR Airports did not respond to a Reuters email seeking comment.

The bonds of the company, which currently manages multiple airports including those in Delhi and Hyderabad, are rated A+ by Crisil.