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GMR Hyderabad International Airport Ltd (GHIAL) plans to raise 1,250 crore through non-convertible debentures to be used for prepaying the USD bonds maturing in April 2024 or February 2026, said rating agency India Ratings & Research, as quoted by PTI.

The rating agency stated that the USD bonds have bullet maturities in April 2024, February 2026, and October 2027. As on September 20 this year, GHIAL had a debt of 7,050 which consisted of bonds of USD 950 million.

It made this announcement while assigning an "IND AA/Stable" rating to the proposed bonds. The agency also assigned an "IND AA/Stable" rating to GHIAL's proposed 250 crore bank loan. GHIAL, as per PTI reports.

"The proposed INR 12,500 million ( 1,250 crore) NCDs will be entirely used for prepaying the bonds maturing in April 2024 or February 2026. Depending on the cash accruals, refinancing of the debt is likely to be required in April 2024," it said.

Currently, GHIAL is undertaking expansion to improve the capacity of the airport to 34 million passengers from 12 million passengers. The physical progress as on September 30 was about 77 percent and it plans to complete the expansion works in March 2023, later than the previously envisaged timeline.

As per PTI report, the total Capex has been estimated at 6,600 crore. The Capex is planned to be funded through a debt of 4,530 crore and the balance through internal accruals. As on September 30, an expenditure of 4,710 crore had been incurred while the balance required funds will be met through the unutilized proceeds from the USD bonds (issued in February 2021) of 2,187 crore and internal accruals, India Ratings said.

The Hyderabad Airport reported domestic and international traffic recovered to 95 percent and 82 percent of pre-Covid (compared to October 2019) levels, respectively, in October 2022.

In FY22, GHIAL reported traffic of 12.4 million passengers. Headwinds in the form of high airfares, travel restrictions, or fall in economic growth could influence the traffic, the rating agency said.

 

(With PTI inputs)

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