GMR Group Achieves Financial closure of GMR Malé International Airport Private Limited, Republic of Maldives and takes over operations of Male International Airport
26 November 2010
Kuala Lumpur, 26 November 2010 - GMR Malé International Airport Private Limited (GMIAL), a subsidiary of GMR Infrastructure Limited (GIL) has achieved financial closure for the project to Modernize, Expand and Operate the Malé International Airport. Earlier this year on June 24th 2010, the consortium led by GIL with Malaysia Airports Holdings Berhad (MAHB) had won the concession for the Male Airport for a period of 25 years. GMIAL is the special purpose vehicle formed in Maldives pursuant to the concession in which the stake of GIL and MAHB is 77% and 23% respectively.
The total cost of the modernization and expansion project, estimated at USD 511 million, is being funded through a combination of debt and equity in the ratio of 70:30. The debt component of USD 358 million has been tied up with Axis Bank Ltd., Singapore Branch, who is acting as the Sole Underwriter and Mandated Lead Arranger for the entire debt facility. The debt has a door to door tenure of 12 years with ballooning repayment over 7 years commencing from June 2015. Axis Bank is also acting as Security Trustee and Facility Agent whereas State Bank of India, Maldives Branch is acting as Account Bank for the debt facility
At an official ceremony held today at Hulhulé Island, the aerodrome license was handed over by Chairman of Malé Airports Company Limited, Mr Ibrahim Saleem to Mr Kiran Kumar Grandhi, Business Chairman, Airports, GMR Group. The ceremony graced by HE President, Mahamod Nasheed, his cabinet ministers and Senior General Manager Operation Services of MAHB, Dato' Azmi Murad, was well received. Starting today, GMR & MAHB will operate the Malé International Airport, 4 months ahead of schedule.
Malé International Airport is the gateway to the idyllic and enchanting Maldives and is one of the fastest growing airports in the region. Situated on Hulhulé Island in the politically stable archipelago of Maldives at the South Western tip of India, MIA is the largest airport in Maldives located in the capital city of Malé. The traffic at the Malé Airport in the year 2009 was 2.6 Million passengers with traffic growth in first half of 2010 clocking over 20% on YoY basis.
With Malé, GMR Group in partnership with MAHB have four operational airports. The others being Delhi, Hyderabad and Istanbul.