DIAL signs financing documents

GMR Infrastructure Ltd has informed that Delhi International Airport (P) Ltd (DIAL), a subsidiary of the Company has signed key financing documents with its project lenders for Rs 3650 Crores and foreign currency loan of USD 350 Million for modernization and expansion of Indira Gandhi International Airport, New Delhi.

In this regard, DIAL is issued the following Press Release:

Delhi International Airport (P) Ltd (DIAL) a Public Private Partnership initiative mandated to modernize and restructure Indira Gandhi International Airport, New Delhi has signed key financing documents with its project lenders for Rs 3,650 Crore and foreign currency loan of USD 350 Million for modernization and expansion of Indira Gandhi International Airport, New Delhi.

According to Mr. Shirish Navlekar, Chief financial Officer, the total capital expenditure programme of the first Phase till year 2010 and estimated at about Rs 8,900 Crores. This is expected to be funded by debt and equity in the ratio of 1.25:1 comparing equity and quasi equity of about Rs 3,950 crores and debt of Rs 4,940 Crore. Mr. Navlekar further added that a consortium of 12 banks has signed the financing documents for loans aggregating to Rs 4,940 Crore at the document signing ceremony held at New Delhi. The rupee component of the debt amounting to Rs 3,650 Crore has been raised with 17 year door-to-door tenor at an interest rate of 10.50% and ECB component of USD 350 Million has been raised with a 13 year door-to-door tenor. The Company has received an overwhelming response from the banks by way of total Rupee loan sanctions crossing Rs 8,600 Crore and ECB of USD 500 Million against the total debt requirement of Rs 4,940 Crore. The deal has been syndicated by ICICI Bank Ltd.

The total requirement of debt has been financed by Canara Bank Rs 600 crore, IIFCL Rs 500 Crore, Union Bank of India Rs 500 Crore, Oriental Bank of Commerce Rs 400 Crore, Central Bank of India Rs 400 Crore, Andhra Bank Rs 250 Crore, Vijaya Bank Rs 250 Crore, IDFC Rs 250 Crore, Bank of India Rs 250 Crore and Punjab National Bank Rs 250 Crore, Foreign Currency loan of USD 350 Million has been financed by ICICI Bank, Singapore-USD 200 Million and Abu Dhabi commercial Bank, Abu Dhabi- USD 150 Million

DIAL is currently implementing the Master Plan for the development of a new airport complex. Work on the integrated passenger terminal and runway commenced in Feb 2007 and the new terminal would be inaugurated in 2010 before the Commonwealth Games. Prior to that in 2008, the brand new Code F compliant runway and domestic terminal will be ready to cater to the growing traffic. IGI Airport is one of the largest airports in India with over 20 Million passengers per year, and will become one of the largest airports in the region by 2010, with slated capacity of 37 Million passenger per annum (mppa). The Master Plan envisages an ultimate design capacity of 100 million passengers per annum by 2026.