GMR Infrastructure, the flagship company of the GMR Group had raised $300 million by selling foreign currency convertible bonds (FCCBs) to Kuwait Investment Authority (KIA), a sovereign wealth fund. KIA has agreed to subscribe to a sixty year (60 year) long Foreign Currency Convertible Bond (FCCB) due 2075 to be issued by GMR. The bonds will be convertible into equity shares of Rs 1 each. The initial conversion price is Rs 18 per share, but the investor can exercise the option to convert after 18 months.
GMR’s FCCB issuance is the longest tenor convertible issuance out of India and will have several ‘equity-like’ features such as long tenor, unsecured and subordinated status and mandatory conversion. Such features are generally seen in perpetual-type issuances. The proceeds from the FCCB will be primarily used to repay certain outstanding obligations of GMR and its subsidiaries.
GMR Infrastructure is a Bangalor headquartered Infrastructure group with interests in Airports, Energy, Highways and Transportation & Urban Infrastructure sectors. It has successfully employed the public-private partnership model to build a portfolio of high quality assets. The Company has 15 Power generation assets of which 8 are operational and 7 are under various stages of development.
| Company Name | CMP |
|---|---|
| Dreamfolks Services | 83.00 |
| GMR Airports | 97.80 |
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