India's GMR Infrastructure said in early December it has raised US$300 million from Kuwait Investment Authority through a 60-year foreign currency convertible bond (FCCB) due 2075 and the money will be used to repay certain outstanding obligations of the company.
GMR Group Chairman GM Rao said:
"This is the largest bilateral investment of Kuwait Investment Authority in India. This investment shows confidence of sovereign investors in the long term policies being implemented by the government, particularly in the infrastructure space.
The proceeds from the FCCB will be primarily used to repay certain outstanding obligations of GMR and its subsidiaries."
The issuance is the longest-tenor convertible issuance out of India and will have several 'equity-like' features such as long tenor, unsecured and subordinated status and mandatory conversion.
Kuwait Investment Authority Executive Director Farouq Bastaki said:
"We believe GMR is well positioned to play an important role in India, as the country aggressively expands its infrastructure footprint in the coming years. We look forward to participating in GMR's growth as a long term investor and build a deeper relationship."
Deutsche Bank Equities India acted as the financial advisor to GMR and Citigroup Global Markets India was the financial advisor to Kuwait Investment Authority.
GMR Group is one of the fastest growing infrastructure enterprises in the country with interests in airports, energy, highways and urban infrastructure sectors. Employing the Public Private Partnership model, the group has successfully implemented several iconic infrastructure projects in India.