NIIF, India's Infrastructure Focussed Sovereign Wealth Fund, To Invest In 3 GMR Group Airport Including Rs 631 Crores In Goa's Mopa Airport
Cebu airport GMRNational Investment and Infrastructure Fund (NIIFL), India's sovereign wealth fund with sectoral focus on infrastructure, announced a financial partnership under which NIIF will invest in three airport projects including the new international airports in Mopa, Goa and Bhogapuram, Andhra Pradesh.
NIIF will invest Rs 631 crore in the greenfield international airport at Mopa (Goa), which was inaugurated on December 11.
This will be NIIF's first investment in the domestic airport sector and its first direct investment in Goa, GMR said in a release.
According to GMR, the transaction envisages NIIF making a primary investment of Rs 6.31 billion (Rs 631 crore) in the form of Compulsory Convertible Debenture (CCD) in GMR Goa International Airport Limited (GGIAL), a special purpose vehicle to run and operate the new Goa Airport.
GGIAL, the company that build and operates the Mopa Airport, is promoted by GMR Airports Ltd, a joint venture between the GMR group and the France’s Groupe ADP.
GMR Airports Limited (GAL) is a subsidiary of GMR Infrastructure Ltd.
GMR group has developed airports in over nine countries and currently operates five.
The transaction is subject to customary completion conditions and necessary approvals, GMR added.
In addition to Goa, "our partnership with NIIFL will also extend to two more airports (including the upcoming greenfield airport at Bhogapuram in Andhra Pradesh)", said GBS Raju, business chairman for airports at GMR Group.
NIIF believes that Mopa international airport will boost air connectivity to the state and provide strong tailwinds to the tourism linked economy of Goa, said Vinod Giri, Managing Partner - Master Fund, National Investment and Infrastructure Fund Limited.
"NIIFL's Master Fund is India's largest infrastructure fund and has built a robust and well-diversified portfolio across ports and logistics, among others. NIIF's investment in Mopa airport will be the Master Fund's sixth investment," said Giri.
In line with the fund strategy, this investment complements the existing portfolio and is a first step for NIIF to expand its presence in the airport sector, he added.
An Appeal...
Dear Reader,
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.
