According to a PTI report, GMR group is to raise $350 million for expansions at the Indira Gandhi International Airport, Delhi through 10-year senior-secured bonds. The expansion is expected to cost to up to ₹9,800 crore over a three-year period and will be used to increase passenger-handling capacity up to 100 million passengers per annum at the Delhi airport.

As per a few industry reports, the expansion project will strengthen the airport’s market position and robust passenger traffic, which would grow exponentially over the next 18 months.

Despite its elevated leverage position, Delhi International Airport Limited’s (DIAL) liquidity position is strong, with cash holdings and short-term investments totalling to ₹2600 crore as of March 2019. These assets offer the airport with additional financial flexibility over the next 12-18 months.

DIAL works as a concessionaire for Indira Gandhi International Airport, under an Operations, Management and Development Agreement signed in 2006 with the Airports Authority of India.

Natasha Nitturkar