GMR Airports’ arm gets `750-cr loan from Axis Bank

Hyderabad: GCLL, a subsidiary of GMR Airports, has availed a term loan facility of Rs750 crore from Axis Bank for developing the cargo city at the Delhi airport. The cargo city project, coming up over a total of 50.5 acres of land within the national capital’s Indira Gandhi International Airport (IGIA), is being developed by GMR Cargo and Logistics Ltd.

“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,” a company’s communique to the BSE said.

The airport is operated by the Delhi International Airport Ltd (DIAL), a subsidiary of GMR Airports. GCLL has availed the rupee term loan facility worth up to Rs750 crore from Axis Bank to enable it to meet a part of the estimated project cost towards developing the cargo city, according to a regulatory filing. 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.