GMR Airports Limited will provide a Sponsor Support Undertaking (SSU) and security for its subsidiary, GMR Cargo and Logistics Limited (GCLL), concerning a ₹750 Crore Rupee Term Loan Facility from Axis Bank. The loan will fund the development of a Cargo City at Delhi International Airport. The security includes a pledge/NDU on 51% of GCLL shares.
Support for Delhi Cargo City Development
GMR Airports Limited will support its wholly-owned subsidiary, GMR Cargo and Logistics Limited (GCLL), in developing a Cargo City at Delhi International Airport. This support is linked to GCLL’s ₹750,00,00,000 Rupee Term Loan Facility obtained from Axis Bank Limited.
Sponsor Support Undertaking (SSU) Details
To secure the loan facility, GMR Airports is providing a Sponsor Support Undertaking (SSU). This includes a pledge, a Non-Disposal Undertaking (NDU), or a combination of both on 51% of GCLL’s shares held by GMR Airports, in favor of Axis Bank Limited.
Terms and Validity of SSU
The SSU will be effective throughout Phase 1’s construction period, plus an additional year of operations. GMR Airports undertakes several key commitments through the SSU:
- Subordinating loans provided or to be provided by GMR Airports to GCLL to the Axis Bank Facility.
- Infusing additional funds into GCLL if cost overruns occur during Phase 1 or if GCLL experiences repayment shortfalls.
- Replenishing the Debt Service Reserve Account (DSRA) if GCLL fails to do so.
Project Background
GCLL secured a concession agreement with Delhi International Airport Limited (DIAL) on September 26, 2025, for the development, maintenance, and operation of the Cargo City project.
Source: BSE