GMR Airports’ French partner Groupe ADP Raises €2.5bn Via Bonds

The bonds, raised in two tranches of €1 billion and €1.5 billion each, priced at effective interest rates of 2.125% and 2.75% with maturities of 6.5 years and 10 years, respectively The fixed rate bonds were oversubscribed by more than five times

  • The bonds, raised in two tranches of €1 billion and €1.5 billion each, priced at effective interest rates of 2.125% and 2.75% with maturities of 6.5 years and 10 years, respectively
  • The fixed rate bonds were oversubscribed by more than five times GMR Airports Ltd, the airports business of GMR Infrastructure Ltd, on Monday, said its French partner Groupe Aeroports de Paris SA (ADP) has raised €2.5 billion through bonds, amid global market volatility due to the coronavirus outbreak.

The bonds, raised in two tranches of €1 billion and €1.5 billion each, were priced at effective interest rates of 2.125% and 2.75% with maturities of 6.5 years and 10 years, respectively.

The fixed rate bonds were oversubscribed by more than five times, according to a statement issued by the company. “The over-subscription of bonds in current economic scenario is the testimony of faith, international investors have in Groupe ADP, as global airport developer and operator," it said.

The development comes amid falling markets and rising volatility due to the growing number of coronavirus cases all over the world. With the global economy slowing down to unprecedented levels, the International Monetary Fund (IMF), on Friday, said that the world has entered a global recession that will require massive funding to help developing nations.

In February, GMR Group had entered into an agreement with Groupe ADP for acquisition of 49% stake in GMR Airports for ₹10,780 crore, valuing the entity at ₹22,000 crore.

As per the terms of the deal, ADP would buy 100% stake in GMR Infra Services Ltd and then 49% shareholding in GMR Airports Ltd (GAL), according to a notice submitted to the Competition Commission of India. GMR Infra Services is an operating and holding company. Its primary business is to hold shares in GAL, according to the notice.

So far, the GMR Group has already received the first tranche of ₹5,248 crore, which was utilised to deleverage the group and improve cash flow and profitability, the statement said.

Further, Groupe ADP had also pegged earn-outs up to ₹4,475 crore linked to the achievement of certain agreed operating performance metrics as well as on receipt of certain regulatory clarifications over the next five years. “Thereby, total valuation assuming all above earn-outs are successfully consummated, may reach ₹26,475 crore on post money basis," it said.

GMR Group operates Indira Gandhi International Airport in New Delhi, Hyderabad's Rajiv Gandhi International Airport and Mactan Cebu International Airport in partnership with Megawide in Philippines.

Groupe ADP develops and manages airports, including Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget.

Source - Live Mint

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