Top banks ICICI Bank and Axis Bank, along with India Infrastructure Finance Ltd (IIFL), have pooled funds to subscribe to Delhi International Airport’s ₹800 crore bonds, insiders reveal.
These bonds, issued for a decade, offer an annual interest rate of 9.84%, with a reset option after five years.
The raised funds will go towards financing phase 3A expansion at the Indira Gandhi International Airport, according to the company’s information memorandum (IM).
While GMR Group, ICICI Bank, and Axis Bank declined to comment, IIFL’s response is pending.
Last week, ICICI Bank and Axis Bank each invested ₹300 crore, while IIFL pitched in ₹200 crore. The interest rate is tied to the repo rate, starting with a spread of 334 basis points over the repo rate for the first five years. After that, it will be reset within certain limits.
The revised interest rate must be agreed upon at least 120 days before the reset date, with bondholders having the option to accept or reject the proposed changes. If rejected, the issuer must redeem the bonds.
Rating agency Icra noted DIAL’s sound liquidity position and outlined its funding plan for future capital expenditure.
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