GMR Hyderabad International Airport Ltd (GHIAL), a GMR Group subsidiary, said on Wednesday it has raised funds through a private placement of 10-year listed, rated, redeemable, secured non-convertible debentures (NCD) totalling Rs 1,150 crore.

The company said in a press release that the NCDs issued on Tuesday would be listed on the BSE Limited.

The NCD is priced at an interest rate of 8.805% per annum, paid quarterly for the first five years, after which the rate resets for the next five years.

The issue has been subscribed to by accredited investors (Qualified Institutional Buyers registered under SEBI). Proceeds from the NCD will be used to partially refinance approximately $140 million of existing (externally commercially borrowed) ECB bonds in 2024 and 2026, for which tenders have been completed, together with accrued interest and other issuance costs.

Grandhi Kiran Kumar, Chairman of GMR Group of Companies, commented, “This is the first listing of GHIAL in the domestic bond market, and the response from investors has been overwhelming. Products issued through GHIAL have been subscribed by qualified investors (i.e., QIBs). This demonstrates investor confidence in our ability to raise capital from the domestic market and reflects our continued efforts to create value for investors. The successful pricing of this offering underscores investor confidence in the credit strength of GMR Group and GHIAL.”