GMR Airports Secures Rs 3,125 Cr Funding For Bhogapuram International Airport Development

GMR Airports Infrastructure, a leading player in the aviation infrastructure sector, has successfully raised Rs 3,125 crore through one of its step-down subsidiaries to support the development of Bhogapuram International Airport. The regulatory filing, dated 9 December, announced the financial milestone achieved by GMR Visakhapatnam International Airport (GVIAL), an arm of GMR Airports.

The substantial funding has been secured from a consortium of five lenders, with India Infrastructure Finance Company (IIFCL) leading the group of banks and financial institutions, according to the official filing. The capital infusion is earmarked for the part-financing of the phase-I development of Bhogapuram International Airport, strategically located in Vishakhapatnam, with an anticipated capacity to handle approximately 60 lakh passengers annually.

The debt raised by GVIAL carries a tenure of 18 years, structured across three distinct phases. The construction phase spans three years, followed by a one-year stabilisation phase, and finally, 14 years of structured repayments. This financing structure is designed to ensure a well-organised and sustainable approach to meet the financial requirements of the ambitious airport development project.

GMR Airports highlighted the significance of the funds, emphasising their allocation to the critical phase-I development of Bhogapuram International Airport. The airport project aims to enhance regional connectivity and accommodate the growing air travel demand in the Vishakhapatnam region.

"With the execution of these financing agreements, GVIAL has tied up the necessary debt to fund this project," stated GMR Airports in its regulatory filing. This achievement underscores the company's commitment to advancing major infrastructure projects and contributing to the expansion and modernisation of India's aviation landscape.

The successful financial closure reflects the confidence of the consortium of lenders in the viability and strategic importance of the Bhogapuram International Airport project. As GMR Airports moves forward with its development plans, the secured funding will play a pivotal role in transforming the airport into a key hub for domestic and international travel in the region.