"GMR Visakhapatnam International Airport Ltd Signs Concession Agreement for Bhogapuram International Airport Construction"

GMR Airports Infrastructure Limited's subsidiary, GMR Visakhapatnam International Airport Limited (GVIAL), the entity entrusted with the concession to develop and operate the Bhogapuram International Airport, has achieved a significant milestone by executing a financing agreement amounting to INR 3,215 crores. The financing deal, with a consortium led by India Infrastructure Finance Company Limited (IIFCL), involves the participation of five banks/financial institutions.

The funds secured through this agreement are earmarked for the Phase I development of Bhogapuram International Airport, with a targeted capacity to handle 6 million passengers annually. The debt, spanning 18 years, will comprise a construction phase of 3 years, a stabilization phase of 1 year, and a structured repayment period of 14 years.

This crucial financial arrangement solidifies GVIAL's position in the project, as it paves the way for the necessary funds required for the airport's development. The overall project cost is estimated at INR 4,727 crores. Pursuant to the concession agreement, Andhra Pradesh Airports Development Corporation Limited (APADCL) will reimburse an amount of INR 134.55 crores, while the remaining funds will be sourced through equity, Compulsorily Convertible Debentures (CCDs), sub-debt, among other avenues.

As GVIAL takes decisive steps towards realizing the Bhogapuram International Airport, this financing agreement is a crucial stride in ensuring the seamless progression of the project and underscores GMR Airports Infrastructure Limited's commitment to contributing to the growth and development of the aviation sector in India.

EQUITYBULLS