NIIF to invest 675 cr in GMR’s Bhogapuram airport proj via CCDs

Hyderabad: The National Investment and Infrastructure Fund (NIIF) has entered into a binding agreement with GMR Airports Limited (GAL) to invest 675 crore in GMR Visakhapatnam International Airport(GVIAL), the special purpose vehicle that will be developing and operating the proposed Bhogapuram international airport.NIIF will be making a primary investment by way of compulsorily convertible debentures (CCDs) to be issued by GVIAL. The transaction is, however, subject to customary completion of conditions precedent and necessary approvals, GMR Airports Infrastructure said in a regulatory filing with the bourses on Thursday.GAL is an arm of GMR Airports Infrastructure Ltd and is a partnership between GMR Group and France’s Groupe ADP, in which the French government holds majority stake. The investment is part of the financial partnership that the two players announced in December last year for the investment by NIIF in the equity capital of GAL’s three airport projects. The Bhogapuram international airport (BIA) is NIIF’s second airport after GMR Goa International Airport Limited.GBS Raju, business chairman-airports, GMR Group termed the partnership with NIIF as a testament to GMR’s credibility as an airport infrastructure developer. “The new Bhogapuram airport and airport city will help transform Visakhapatnam and place it on the global map as the most preferred investment destination,” he said.