GMR Airports lines up ₹5,000 cr bond sale; looks to tap falling interest rates

Care Ratings last month upgraded GMR Airports’ loans and bonds to A from BBB+ and expects the firm’s business to be supported by favourable outlook for the airport sector

GMR Airports Ltd. is considering a ₹5000 crore bond sale, according to people familiar with the matter, in what could be a record rupee issuance for India’s second-largest private airport operator.

The New Delhi-based company is considering to raise the funds through a note due in 18-months to three years and will use the proceeds to refinance existing debt, one of the people said, asking not to be identified as the details are private. The firm may aim to price the securities at about 10.5%, the person said.

A representative for GMR Airports didn’t respond to an email seeking comments. 

The company is planning to tap the market as a cumulative 100-basis-point reduction by the central bank this year brings down borrowing costs. The fundraising underscores growth prospects for India’s aviation sector and comes at a time when GMR is looking to expand its footprint in the country. 

GMR, along with the country’s largest airport operator Adani Airport Holdings Ltd., is expected to be among the top contenders as the government looks to privatize 11 airports. If the deal goes through, it will be GMR’s largest-ever rupee offering, according to data compiled by Bloomberg. It has three local-currency bonds amounting to 50 billion rupees maturing next year.

Care Ratings last month upgraded GMR Airports’ loans and bonds to A from BBB+ and expects the firm’s business to be supported by favorable outlook for the airport sector. GMR’s unit Delhi International Airport Ltd. is also planning to issue ₹1,000 crore worth of bonds, according to people familiar with the matter. 

Published on July 23, 2025