GMR Group to raise $1 bn to restructure debt: report

Infrastructure major GMR Group is planning to raise around $1 billion over the next two years to help trim debt, repay investors in its airports business and prepare for a new phase of growth, its chief financial officer said on Monday.

"It will be partly used to repay debt. We may also grow into the renewables space, or look at a small expansion into our existing energy business," Madhu Terdal said.

"We are now in the turnaround phase."

GMR, which has a net debt of Rs41,000 crore ($6.15 billion), has also held preliminary talks with investors about stake sales in its airports and energy businesses but is "not in a hurry" to sell and talks are not at an advanced stage, Terdal said.

GMR was reported to be looking at selling 30 per cent stake in its airport business to go debt free in next 6 years.

GMR was reported to be in talks with Fairfax Financial Holdings and Singapore's Changi Airports International to sell up a 30 per cent stake and invest around Rs3,200 crore.

KKR & Co and Apollo Global Management are also reported to be in the fray to make a deal, which will be around Rs10,000 crore.

GMR is looking to dilute around 49 per cent equity in airports business. The group holds 54 per cent stake in Delhi International Airport Ltd (DIAL) and 63 per cent in GMR Hyderabad International Airport (GHIAL) besides 40 per cent in the $670 million Mactan-Cebu International Airport modernisation project in the Philippines.

"We are aiming at reducing our debt and consolidating our position. As an infrastructure group, we keep exploring various options. But we are not engaged in any definitive conversations with any of the investors at this point in time," ET quoted Terdal as saying.