NIIF and GMR Airports collaborate to invest INR 631 billion in 3 greenfield airports

GMR Airports (GAL), the airport business holding entity and a subsidiary of GMR Airports Infrastructure (formerly known as GMR Infrastructure) and NIIF (National Investment and Infrastructure Fund) announced a financial partnership for NIIF to invest in the equity capital of three airport projects. These include the greenfield international airports at Mopa, Goa and Bhogapuram, Andhra Pradesh.

The transaction envisages NIIF making a primary investment of INR 631 crore in the form of a Compulsory Convertible Debenture (CCD) in GMR Goa International Airport (GGIAL), a special purpose vehicle to run and operate the New Goa Airport. The transaction is subject to customary completion conditions & necessary approvals.

This investment shall be NIIF’s first investment in an airport asset in the country and its first direct investment in the state of Goa.

NIIF and GMR Airports collaborate to invest INR 631 billion in 3 greenfield airports

GGIAL, in 2016, was awarded the concession to develop and operate a second airport in Goa on a Design-Build-Finance-Operate-and-Transfer (DBFOT) basis. Mopa airport is a greenfield airport PPP concession awarded by a state government.

The airport has already received an aerodrome license and upon commissioning, shall form part of the first dual-airport system in India alongside Dabolim airport. In the first phase, Mopa International Airport shall have a design capacity of handling up to 4.4 million passengers per annum, with an ultimate capacity of up to 40 million passengers per annum.

“It is a proud moment for GMR Group having developed Mopa Airport. Goa is the prime holiday destination in India and visited by travellers from across the world. We are confident that Mopa Airport will be a marquee airport in the country and shall add to the pride and economic development of the state. The Airports has been designed to capture the vibrancy and the essence of Goan culture. Our partnership with NIIF which will also extend to two more airports is a further testament of GMR’s credibility as an Airport Infrastructure developer and the future of the Aviation industry in the country.”

GBS Raju, Business Chairman – Airports, GMR Group

GMR Airports is the largest private airport operator in Asia and 2nd largest in the world with a passenger handling capacity of over 189 million annually. GMR Airports, a subsidiary of GMR Airports Infrastructure [formerly known as GMR Infrastructure] (GIL) has Groupe ADP as its strategic partner, which is holding a 49% stake.

GGIAL is promoted by GAL – one of the largest private-sector airport operators globally. GAL is a partnership between India’s GMR group and Groupe ADP (majority equity held by the French government). 

GAL has developed and operated airports in over nine countries and presently operates five airports, viz. Delhi, Hyderabad and Bidar airports in India, Kualanamu Airport in Medan, Indonesia and Mactan Cebu Airport in the Philippines. 

GMR Airports is the largest private airport operator in Asia and 2nd largest in the world with a passenger handling capacity of over 189 million annually.

In addition to Mopa International Airport, GAL is also developing the upcoming airports in Bhogapuram, Andhra Pradesh, and Crete, Greece and awaits the signing of the concession agreement of Nagpur airport, which is a brownfield project.

NIIFL is a government-led collaborative investment platform for international and Indian investors, managing over USD 4.3 billion of equity capital commitments across its three funds: Master Fund, Fund of Funds, and Strategic Opportunities Fund.

“NIIF believes that Mopa international airport will boost air connectivity to the state and provide strong tailwinds to the tourism linked economy of Goa. NIIF’s Master Fund is India’s largest infrastructure fund and has built a robust and well-diversified portfolio across ports & logistics, renewables, smart meters, roads and digital infrastructure. NIIF’s investment in Mopa airport shall be the Master Fund’s sixth investment and is a testament to our commitment to partner alongside reputed infrastructure developers, state governments and key stakeholders to fast-track the execution of the Government of India’s ambitious National Infrastructure Pipeline. In line with the fund strategy, this investment complements the existing portfolio and is a first step for NIIF to expand its presence in the airport sector.”

Vinod Giri, managing partner – Master Fund, NIIF

Last month, NIIF signed a memorandum of understanding (MoU) with Japan Bank for International Cooperation (JBIC) to promote Japanese investments in India. The partnership is aiming for an investment of USD 500 million to USD 700 million in a new bilateral India-Japan Fund (IJF), which will make equity investments in environmental preservation and low carbon emission strategies.

GMR Airports operates the Delhi Airport, which is the largest and fastest-growing airport in India. It also runs Hyderabad Airport. The company is also operating the renowned Mactan Cebu International Airport in Cebu, Philippines, in partnership with Megawide.

GMR Airports operates the Delhi Airport, which is the largest and fastest-growing airport in India. It also runs Hyderabad Airport.

Expanding its overseas footprint, GMR Airports, in collaboration with Angkasa Pura II (AP II), has recently bagged the development and operation rights of Kualanamu International Airport in Medan, Indonesia.

ALSO READ – GMR Airports officially took over the operations of Indonesia’s Medan airport

On a consolidated basis, GMR Airports Infrastructure’s net revenue increased by 17% year-on-year to INR 1,126 crore in Q2FY23. It reported a net loss of INR 195 crore in Q2FY23 as against a net loss of INR 113 crore in Q1FY23 and a net loss of INR 502 crore in Q2FY22.

Shares of GMR Airports Infrastructure ended flat at INR 43.35 on Tuesday, 6 December 2022.

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