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GMR Cargo and Logistics Ltd, a subsidiary of GMR Airports, has secured a term loan of INR 750 crore from Axis Bank to develop a cargo city at Delhi's Indira Gandhi International Airport across 50.5 acres. To secure the facility, GMR Airports provided a Sponsor Support Undertaking and pledged or restricted the sale of 51% of its GCLL shares. The SSU will cover the construction period of Phase 1 and one year of operations. Additional funding will be infused if project costs overrun or repayments fall short.
GMR Airports' subsidiary, GMR Cargo and Logistics Ltd (GCLL), has obtained a term loan of up to INR 750 crore from Axis Bank to support the development of the cargo city at Indira Gandhi International Airport (IGIA) in Delhi. The project is being planned across 50.5 acres within the airport premises and aims to enhance the airport's cargo handling capabilities. Advertisement
Delhi International Airport Ltd (DIAL), a subsidiary of GMR Airports, operates IGIA. The loan facility will fund a portion of the estimated costs for the cargo city's construction. To secure the loan, GMR Airports has provided a Sponsor Support Undertaking (SSU) along with either a pledge, a Non-Disposal Undertaking (NDU), or a combination of both over 51% of its GCLL shares in favor of Axis Bank.
The SSU will remain effective throughout the construction of Phase 1 and extend for one year of operations, unless otherwise agreed with Axis Bank. Under this arrangement, GMR Airports has confirmed that any subordinated loans provided to GCLL will be subordinate to the bank facility. The company is also obliged to infuse additional funds in case of cost overruns during Phase 1 or any shortfall in GCLL's repayment obligations.
For this project, GCLL and DIAL had entered into a concession agreement in late September, formalizing the partnership to develop the cargo city at IGIA. The initiative is expected to strengthen Delhi airport's position as a key logistics and cargo hub.
Source PTI
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