GMR, NIIF Partner to Invest in 3 Airports; NIIF to Invest Rs 6.31 Bn in Upcoming Greenfield Airport in Goa

GMR Airports Ltd (GAL), an arm of GMR Airports Infrastructure Ltd, and NIIF (National Investment and Infrastructure Fund) entered into a financial partnership in which NIIF will be investing in the equity capital of three airport projects including greenfield international airports at Mopa in Goa and Bhogapuram in Andhra Pradesh.
 
As per the deal, NIIF will make a primary investment of Rs 6.31 billion in the form of a Compulsory Convertible Debenture (CCD) in GMR Goa International Airport Ltd (GGIAL), a special purpose vehicle (SPV) to run and operate the New Mopa International Airport in Goa.
 
However, the transaction is subject to customary completion conditions and necessary approvals.
 
Notably, this investment would be NIIF’s first investment in an airport asset in India and its first direct investment in Goa.
 
Commenting on investing in the Airport Business, Vinod Giri, Managing Partner – Master Fund, National Investment and Infrastructure Fund Ltd, said, “NIIF believes that Mopa international airport will boost air connectivity to the state and provide strong tailwinds to the tourism linked economy of Goa. NIIFL’s Master Fund is India’s largest infrastructure fund and has built a robust and well-diversified portfolio across ports & logistics, renewables, smart meters, roads and digital infrastructure. NIIF’s investment in Mopa airport shall be the Master Fund’s sixth investment and is a testament to our commitment to partner alongside reputed infrastructure developers, state governments and key stakeholders to fast-track the execution of the Government of India’s ambitious National Infrastructure Pipeline. 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.”
 
In 2016, GGIAL was awarded the concession to develop and operate a second airport in Goa on a Design-Build-Finance-Operate-and-Transfer (DBFOT) basis.  Mopa airport is a greenfield airport PPP concession awarded by a state government. The airport has already received aerodrome license and upon commissioning, will be part of the first dual-airport system in India alongside Dabolim airport.
 
GGIAL is promoted by GAL – one of the largest private sector airport operators globally. GAL is a partnership between India’s GMR group and Groupe ADP (majority equity held by the French government).
 
In addition to Mopa International Airport, GAL is also developing the upcoming airports in Bhogapuram, Andhra Pradesh, and in Crete, Greece and awaits signing of the concession agreement of Nagpur airport, which is a brownfield project.
 
“It is a proud moment for GMR Group having developed Mopa Airport. Goa is the prime holiday destination in India and visited by travellers from across the world. We are confident that Mopa Airport will be a marquee airport in the country and shall add to the pride and economic development of the state. The Airports has been designed to capture the vibrancy and the essence of Goan culture. Our partnership with NIIFL which will also extend to two more airports is a further testament of GMR’s credibility as an Airport Infrastructure developer and the future of the Aviation industry in the country,” said GBS Raju, Business Chairman – Airports, GMR Group.