BANGALORE, India--(BUSINESS WIRE)--
Leading global investment firm KKR announced that it has signed a term
sheet to provide INR10 billion (US$164.2 million) of structured
long-term financing, with co-investors, to leading Indian infrastructure
development company GMR Holdings Pvt. Ltd. ("GMR"), the holding company
for the GMR Infrastructure Ltd. ("GIL") (NSE stock code: GMRI:IN), one
of India's leading infrastructure business groups. The transaction is
subject to customary transaction documentation. Further terms of the
transaction have not been disclosed.
GMR Group is one of the fastest-growing infrastructure enterprises in
India with interests in the airport, energy, highway and urban
infrastructure sectors. GMR Holdings will infuse funds in GMR
Infrastructure in the form of equity capital which will help GIL to
further strengthen its balance sheet, support the funding requirement
for projects and meet its financing obligations.
Grandhi Kiran Kumar, Group Director, GMR Holdings, said, "The infusion
of additional equity from promoters of GIL is a testimony to the
promoters' confidence in the long-term value of the Group's business.
The rights issue, after successful conclusion, will improve the net
worth of GIL and bring down the net debt-to-equity ratio to around 2.85
as against 3.50 prevailing as of March 2014. In addition, it will reduce
the corporate debt of GIL. This partnership with KKR helps GMR to
strengthen its foundation for the next phase of growth."
BV Krishnan, Managing Director, KKR Capital Markets, said, "We are
delighted to have entered into this partnership with GMR, which has been
at the forefront of high-quality infrastructure development in India.
GMR represents a significant opportunity for KKR to partner with
committed infrastructure groups which have developed world-class, highly
relevant assets to build India."
In India, KKR provides structured financing solutions through multiple
capital pools, including a non-banking finance company, alternative
investment funds and special situations capital pools. The firm looks to
provide flexible, long-term capital which can help companies achieve
their objectives of balance sheet consolidation, deleveraging and
long-term growth. KKR has executed more than US$2 billion of structured
financing to 21 business groups in India through its credit and capital
markets business over the past five years.
About GMR Group
GMR Group is a Bangalore headquartered global infrastructure major with
interests in Airports, Energy, Highways and Urban Infrastructure
sectors. It has successfully employed the public-private partnership
model to build a portfolio of high quality assets. The Company has 15
power generation assets of which 8 are operational and 7 are under
various stages of development. In the Highways sector the Group is
operating 7 road assets across the country.. In the Airports sector, the
Company operates India's busiest airport, the Indira Gandhi
International Airport in New Delhi, where it has built a brand new
integrated terminal T3. It has also developed and commissioned the
Greenfield international airport at Hyderabad as a gateway to south and
central India. The Group has been recently awarded the Mactan-Cebu
International Airport project in the Philippines for rehabilitation,
expansion and operation with a concession period of 25 years. GMR Group
is also committed to social development initiatives and executes these
through its Corporate Social Responsibility arm, the GMR Varalakshmi
Foundation which is present in 24 locations.
For further information about GMR Group, visit www.gmrgroup.in.
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com.
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- Corporate Communications
KKR Asia Pacific
Anita Davis, +852 3692 7335
Huller, +1 212 750 8300
India (for KKR India)
Mihir Mukherjee, +91 99875 56960
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