GMR will get a loan amount of Rs 1,000 crore from KKR
US private equity firm KKR & Co and co-investors have agreed to provide Rs 1,000 crore ($164.2 million) in long-term financing to GMR Holdings Pvt Ltd, the holding company for GMR Infrastructure Ltd. Without disclosing the terms of the transaction, GMR Holdings said the deal is subject to customary transaction documentation.
GMR Group has interests in the airport, energy, highway and urban infrastructure sectors. GMR Holdings will infuse funds into GMR Infra in the form of equity capital, which will help the company further strengthen its balance sheet, support the funding requirement for projects and meet financing obligations.
The infusion of additional equity from promoters of GMR Infra is a testimony to the promoters’ confidence in the long-term value of the group’s business said Grandhi Kiran Kumar, Group Director, and GMR Holdings. The rights issue, after successful conclusion, will improve the net worth of GMR Infra and bring down the net debt-to-equity ratio to around 2.85 against 3.50 prevailing as of March 2014. In addition, it will reduce the corporate debt of GMR Infra, said Kumar.
