FCC

Abu Dhabi Investment to Invest $750M in GMR Group's Debt

2024-10-24

The Abu Dhabi Investment Authority (ADIA), recognized as the UAE's largest sovereign wealth fund, plans to invest approximately $750 million in the debt of India's GMR Group, thereby establishing a presence in one of the fastest-growing aviation markets globally.

This investment will also enable GMR Group to reduce the pledged shareholding related to its airports business.

ADIA's funds will be allocated to structured debt instruments of GMR Enterprises (GEPL), the holding company for GMR Group, which holds nearly a 25% stake in GMR Airports.

The capital will be used to refinance all external debt of GMR Enterprises, which aims to significantly lower its pledge on the shareholding of GMR Airports, as stated by GMR Group in an exchange filing.

According to GMR Enterprises' latest annual report, the total debt increased by nearly 4% year-on-year to Rs 44.77 billion. GMR Group Corporate Chairman Kiran Grandhi remarked that the investment from ADIA would facilitate the repayment of all external debt at GEPL, thereby strengthening their ability to support the ongoing growth of GMR Airports.

It is anticipated that India's domestic passenger traffic will double to 300 million by 2030.