GMR Hyderabad International Airport Ltd (GHIAL) is planning to raise Rs1,660-2,000 crore by selling offshore bonds. The company has hired Citigroup Inc. and Bank of America Merrill Lynch (BofAML), among others, to conduct road shows. The debt-ridden GMR Group holds a 63% stake in GHIAL, government of India 13%, government of Telangana 13% and Malaysia Airports Holdings Bhd 11%. The fund-raising comes close on heels of Delhi International Airport Pvt. Ltd, another GMR unit, raising $520 million through a similar issue in October. The bonds will have a tenure of about 10 years and will be used for refinancing debt of GMR Infrastructure Ltd. GMR Infrastructure has a total consolidated debt of Rs37,413 crore as of 31 March. The GMR Hyderabad Airport, incorporated to build, design, finance, operate and maintain the Rajiv Gandhi International Airport in Hyderabad, is a public-private partnership for the build, own, operate and transfer project. The airport, which began commercial operations in March 2008, has a capacity to handle 12 million passengers and 150,000 tonnes of cargo every year in phase – I, according to the company website. GHIAL recorded annual sales of Rs615.49 crore and a net profit of Rs40.27 crore in 2015-16.
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