Kuwait Invested 2,000 Crore In India's GMR Infra
Category: Kuwait Local News

India's Engineering firm GMR Infrastructure today said that it has raised $300 million (around Rs 2,000 crore) from Kuwait Investment Authority through a 60-year foreign currency convertible bond and the money will be used to repay certain outstanding obligations of the company. 

“Kuwait Investment Authority signed a definitive agreement to invest USD 300 million or around Rs 2,000 crore in GMR Infrastructure,” the company said in a statement.
Kuwait Investment Authority has agreed to subscribe to a 60-year-long foreign currency convertible bonds (FCCB) due 2075.

“This is the largest bilateral investment of Kuwait Investment Authority in India. This investment shows confidence of sovereign investors in the long term policies being implemented by the India government, particularly in the infrastructure space,” GMR Group Chairman GM Rao said.

“The proceeds from the FCCB will be primarily used to repay certain outstanding obligations of GMR and its subsidiaries,” Rao said.

GMR’s FCCB issuance is the longest-tenor convertible issuance out of India and will have several ‘equity-like’ features such as long tenor, unsecured and subordinated status and mandatory conversion. Such features are generally seen in perpetual-type issuances, the release said.

Kuwait Investment Authority Executive Director Farouq Bastaki said, “We believe GMR is well positioned to play an important role in India, as the country aggressively expands its infrastructure footprint in the coming years. We look forward to participating in GMR’s growth as a long term investor and build a deeper relationship.”
Deutsche Equities India acted as the financial advisor to GMR and Citigroup Global Markets India was the financial advisor to Kuwait Investment Authority.



05 Dec, 2015 0 1037
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