GMR Airports‘ subsidiary GMR Cargo and Logistics has received a term loan facility worth up to Rs 750 crore from Axis Bank for developing the cargo city at the Delhi airport, the company said in an exchange filing.
The infrastructure company has availed the loan for its upcoming cargo city project, spread over 50.5 acres of land within Delhi’s Indira Gandhi International Airport (IGIA). The airport is operated by the Delhi International Airport Ltd (DIAL), a subsidiary of GMR Airports.
Guarantee for the loan
To secure the loan facility, GMR Airports has provided a Sponsor Support Undertaking (SSU) along with the creation of a pledge or the provision of Non-Disposal Undertaking (NDU) or a mix of pledge and NDU on 51 per cent of its shares of GCLL in favour of Axis Bank, the filing said.
“The SSU shall remain valid throughout the construction period of Phase 1 plus 1 year of operations of the project, unless otherwise agreed between the company and Axis Bank Ltd,” the company said in the filing.
GMR undertaking
Under the SSU, GMR Airports has given an undertaking that the subordinated loans provided and/or to be provided by the company to GCLL shall be subordinated to the facility. Also, the company is required to infuse additional funds in GCLL in case of cost overrun under the first phase of the project and shortfall by GCLL in repayment of the facility.
For developing the cargo city project, GCLL and DIAL had entered into a concession agreement on September 26.
