The company has principal repayment obligation of Rs 2,976 crore in FY21. Along with the fundraise, the firm will use the Rs 1,000 crore of equity infused into it after the completion of a deal with France’s Groupe ADP for the airport business.
In February this year, GMR Group had signed an agreement with ADP to sell a 49 per cent stake in its airport-holding company GAL. GMR group holds 51 per cent stake with management control in GAL.
CARE has assigned a rating of “A-” to the NCDs, while the outlook is negative. The rating factors in GAL’s status as holding company of two major airports — Delhi International Airport (DIAL) and GMR Hyderabad International Airport (GHIAL) and healthy financial flexibility.
DIAL and GHIAL have demonstrated consistent improvement in business profile till FY20, thereby demonstrating self-sufficiency for future expansions. The rating also factors in the current ownership structure of company.
The rating, however, continues to remain constrained by the susceptibility of GAL’s revenues to seasonality and volatility associated with air passenger traffic growth in operating assets. This was seen during the Covid-19 pandemic and regulatory risk faced by airport assets.
The company plans to repay part of debt obligations during FY22 through the planned bond offering in its international subsidiary GMR Airports
International BV (GAIBV).