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New Delhi: GMR Airports' subsidiary GCLL has availed a term loan facility worth up to Rs 750 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 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 Rs 750 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.
"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 filing to the BSE late on Wednesday said.
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.
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