BANGALORE: GMR Infrastructure, which is building Maldives' largest airport, the Male International Airport, could face a funding shortage of $25 million annually, after reports emerged that a local political party - Dhivehi Qaumee Party (DQP) - may file a case against the Bangalore-based company for collecting airport development charges (ADC).
GMR Infrastructure plans to charge $25 per passenger from the annual departing passenger count of one million, and wants to introduce a $2 insurance charge at the check-in counters starting January to offset the costs incurred in building the airport.
"The local opposition party is alleging that the ADC should be removed. However, GMR has mentioned that as per the terms of the airport agreement, it will be allowed. The company is looking to fund $25 million per annum for its capex plan of $511 million," said a person close to the development.
The company had earlier tried to include ADC within the airline ticket price itself, but the International Air Transport Association (IATA) didn't allow it.
DQP vice-president Imad Solih has already submitted a separate civil case, questioning the legitimacy of the charge, and has requested the court to take action against the country's finance ministry, according to a report by Haaveru Online, a local website.
"ADC at Ibrahim Nasir International Airport, Male, is a charge approved by the Government of Maldives and we will implement the same in due course of time. As of now, we have no official intimation of the same and thus, would not like to comment on speculative news," a GMR spokesperson said.
In June last year, the GMR-led consortium won a bid to build, operate, modernise and expand the Male airport for a period of 25 years, from the Maldives government. The Bangalore-based company holds a 77% stake in the international airport through a joint venture between GMR and Malaysia Airports Holdings Berhad.
Once upgraded, Male airport is expected to handle traffic of over 3 million passengers by 2014, and thereby increasing traffic by a further 2 million in the recent future. Currently, the airport handles 2.6 million passengers annually.
GMR has raised debt of $358 million from Axis Bank, Singapore branch, the sole underwriter and mandated lead arranger for the entire debt facility. The debt has a door-todoor tenure of 12 years with ballooning repayments over seven years, commencing from June 2015.
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Showing posts with label GMR Infra. Show all posts
Showing posts with label GMR Infra. Show all posts
Sunday, December 4, 2011
Wednesday, April 20, 2011
GMR Infra eyes $150 mn private equity cash
BANGALORE: GMR Infrastructure Ltd , which develops airports and power projects, is looking to raise $150 million through private equity for its airport arm, its group chief financial officer said on Tuesday.
The company was in the process of securing final government approvals for the deal, which had already won clearance from the Foreign Investment Promotion Board, Subbarao Amarthaluru told Reuters in an interview, adding it would be difficult to set a timeline for the deal closure.
There would be no immediate equity dilution due to the investment as it would be in the form of compulsorily convertible structured product that will be convertible when the unit goes public, he added.
Last month, Bangalore-based GMR said Macquarie SBI Infrastructure Investments had invested $200 million in its unit, GMR Airports Holding Ltd, which runs the Delhi and Hyderabad airports.
With these private equity investments, Bangalore-based GMR's cash position is likely to touch $1 billion, he said.
Amarthaluru said an initial public offer for its energy unit, GMR Energy, was likely only by end of the current fiscal year to March 2012 or the beginning of the next fiscal year.
"There has to be conducive market conditions," he said. "And as of now we have money, also. There is no point in raising money much ahead of your requirements."
Last year, the company raised $300 million through a private equity sale in GMR Energy.
Earlier on Tuesday, GMR said it had completed the sale of its 50-percent stake in US-based utility InterGen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt.
The company bought the stake for $1.1 billion in 2008.
The company was in the process of securing final government approvals for the deal, which had already won clearance from the Foreign Investment Promotion Board, Subbarao Amarthaluru told Reuters in an interview, adding it would be difficult to set a timeline for the deal closure.
There would be no immediate equity dilution due to the investment as it would be in the form of compulsorily convertible structured product that will be convertible when the unit goes public, he added.
Last month, Bangalore-based GMR said Macquarie SBI Infrastructure Investments had invested $200 million in its unit, GMR Airports Holding Ltd, which runs the Delhi and Hyderabad airports.
With these private equity investments, Bangalore-based GMR's cash position is likely to touch $1 billion, he said.
Amarthaluru said an initial public offer for its energy unit, GMR Energy, was likely only by end of the current fiscal year to March 2012 or the beginning of the next fiscal year.
"There has to be conducive market conditions," he said. "And as of now we have money, also. There is no point in raising money much ahead of your requirements."
Last year, the company raised $300 million through a private equity sale in GMR Energy.
Earlier on Tuesday, GMR said it had completed the sale of its 50-percent stake in US-based utility InterGen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt.
The company bought the stake for $1.1 billion in 2008.
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