GMR Hyderabad International Airport Limited (GHIAL) in India has announced that it will raise $300m by issuing bonds in the international bond market to fund the airport’s development plans.

A part of GMR Airports Limited and GMR Infrastructure Limited (GMR Group), GHIAL has signed a purchase agreement for issuing and allotting $300m through 4.75% senior secured notes of five-year tenure.

The funds will be utilised for expanding Hyderabad’s Rajiv Gandhi International Airport, increasing its capacity to handle nearly 34 million passengers every year.

GMR Group corporate chairman Grandhi Kiran Kumar said: “We are delighted on the successful pricing of this transaction. The offering through GHIAL reinforces our ability to raise funds from the International Bond Markets and reflects our continued effort to create value for our investors and raise capital for growth.

“The successful pricing of the offering underscores investors’ confidence in GMR Group and credit strength of GHIAL.”

Hyderabad Airport is operated by GHIAL, where the GMR group holds a 63% stake, Airports Authority of India holds a 13% stake, Government of Telangana holds a 13% stake and Malaysia Airports Holdings Berhad (MAHB) Group holds a 11% stake.

The firm was incorporated to build, design, finance, run and maintain a Greenfield airport at Shamshabad, known as Rajiv Gandhi International Airport (RGIA) in Hyderabad.

The airport was constructed in about 31 months and was inaugurated on 14 March 2008 with an initial capacity to manage 12 million passengers, along with 150,000t of cargo per annum.

Earlier, GMR Hyderabad and Dubai Airports signed a logistics deal for the distribution of the Covid-19 vaccine.

Through an exclusive vaccine air freight corridor called HYDXB-VAXCOR (Hyderabad to Dubai global Vaccine Corridor), the two entities will handle up to 300t of vaccines a day.