Indian Economy News

GMR Airports' international partner Groupe ADP raises US$ 2.75 billion in bonds

  • IBEF
  • March 31, 2020

GMR Airports's international partner, Groupe ADP of France, has raised €2.5 billion in bonds in two-parts.

A Share Purchase Agreement was signed in February 2020 between GMR Group and Groupe ADP in order to divest 49 per cent stake in GMR Airports Ltd (GAL) for an equity consideration of Rs 10,780 crore (US$ 1.78 billion).

The two-part bonds having different maturity have been priced at effective interest rate of 2.125 per cent and 2.75 per cent, respectively. The bonds were over-subscribed by more than five times.

This over-subscription of bonds in the present economic scenario is the statement of the faith international investors have in Groupe ADP, as global airport developer and operator.

The value of deal is at Rs 22,000 crore (US$ 3.15 billion). The first tranche of Rs 5,48 crore (US$ 750.89 million) has been received by GMR Group, which was utilised to deleverage the Group and improve cash flow and profitability.

Groupe ADP had also secured earn-outs up to Rs 4,475 crore (US$ 640.29 million) connected to achievement of certain agreed operating performance metrics as well as on receipt of certain regulatory clarifications over the next five years.

The cumulative valuation, considering all above earn-outs are successfully achieved, may reach Rs 26,475 crore (US$ 3.79 billion) on Post Money Basis, according to GMR.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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