Report says remaining amount of money will be used to partially fund company's capital expenditure.
Mumbai: GMR Hyderabad International Airport (GHIAL), company that manages and controls Hyderabad airport, has issued securities or dollar bonds to raise Rs 2,275 crore or $350 million. According to a report in the Financial Express, the money raised will be used to refinance loans. Remaining amount of money will be used to partially fund capital expenditure or capex.
“The funds would be used for refinancing its existing loans and for capex as well,” FE quoted a banker as saying.
GHIAL had priced its dollar bonds at 4.25 per cent, sources close to the deal told FE. Report also quotes an unidentified investment banker as claiming "this to be the tightest ever pricing on a bond from a high-yield issuer out of India". However, this could not be verified independently.
Roadshows for the 144A issue were held across New York, London, Hong Kong, Boston and Singapore. In the even US investors also are allowed to take part. Moody’s Investors Service has given a first-time corporate family rating of Ba1 to GHIAL. While, S&P Global Ratings has given ‘BB+’ long-term corporate credit rating, according to the FE report.