GMR Infra looking at global markets for funds at lower rates

Close on the heels of securing a R1,000-crore long-term loan from global private equity major KKR, GMR Infrastructure said that it is looking at international markets for funds at lower interest rates.

Managing director Kiran Kumar Grandhi said on Thursday at the company's annual general meeting that the firm will focus on recalibrating its assets to gain confidence of international investors.

Grandhi said the company is working on international bonds for low-cost funds. He added that company is also looking at international pension funds and high net worth families for long term investments in the various infrastructure projects of the company.

The company had recently signed an MoU with Japan Bank for International Cooperation (JBIC) for providing financial assistance to Japanese companies investing in GMR's infrastructure projects.

Company executives told shareholders that the recent announcement of investments in infrastructure by Japan and China will bolster the funds flow to the sector. The company also said that it has established an internal team for mergers and acquisitions and divestments.

GMR said that its debt-equity ratio will come down to 2.8 after its proposed rights issue from the current 3.5 and that will help it gain the confidence of international investors. It said that its net worth will go up to R14,000 crore after the completion of rights issue.

GMR's board had on Tuesday announced that it has approved a proposal to raise up to R1,500 crore by way of rights issue to the shareholders of the company. This came alongside a move to infuse funds by the promoter group's holding company, GMR Holdings which has separately announced signing of a long term loan of R1,000 crore ($164.2 million) with global private equity firm KKR.

GMR CFO Madhu Terdal said that the company's ratio of operational assets to total assets has been increasing and currently stood at R39,000 crore out of an asset base of R55,000 during FY 14.

GMR Group