BackADB to part fund GMR Infra’s Mactan Cebu airport project
The multilateral finance institution will lend $75 million for its $750 million Philippines airport project
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GMR Infrastructure Ltd on Tuesday said multilateral finance institution Asian Development Bank (ADB) will lend $75 million for its $750 million Philippines airport project.
GMR-Megawide Cebu Airport Corp. (GMCAC), a joint venture between GMR (40% shareholding) and Megawide Construction Corp. (60%), has amended its financing documents of its Mactan Cebu International Airport located in Cebu, Philippines to include the ADB loan, GMR Infrastructure told the Bombay Stock Exchange.
“The financing will fund 70% of its total project cost of Php 33 billion (approximately $750 million). ADB will fund $75 million of this as a portion of its share in the funding. The loan is now being financed by a consortium of seven banks including ADB," the company said in the filing.
GMCAC shall be responsible for construction, development, renovation, expansion and operation of the Mactan Cebu International Airport for a period of 25 years as provided in the concession agreement.
On 22 December, GMCAC and Megawide Construction had signed financing documents of its Mactan Cebu International Airport.
BDO Capital and Investment Corp. acted as lead arranger to the transaction.
“Total equity contribution of GMR to GMCAC will be approximately $90 million, out of which GMR has already invested $48 million and do not envisage any further investment in the near future," GMR had said.
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