Mumbai: A unit of GVK Power and Infrastructure sold Rs6.85 billion of bonds to fund the purchase of Larsen & Toubro’s stake in Bangalore International Airport, a top GVK official told Reuters on Thursday.
“Yes, the funds were raised for the purchase of the stake in the Bangalore airport,” GVK’s chief financial officer Isaac George told Reuters over the telephone.
GVK had early this month said it plans to buy a 17% stake in Bangalore International Airport Ltd (BIAL) for Rs6.87 billion from L&T Infrastructure Development Projects Ltd.
Last month, GVK had also said it would buy a 12% stake in BIAL from Flughafen Zuerich AG for Rs4.85 billion. In addition to Bangalore, GVK also holds an equity stake in Mumbai International Airport Pvt Ltd.
GVK Airport Developers Pvt Ltd sold one-year bonds carrying a coupon rate of 8.98%, rated ‘AA-minus(so) by Brickwork, and Standard Chartered Bank was sole arranger to the issue.