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Sources say that India's GMR Airports has finalized details for its largest bond issue

Three sources familiar with the development said that GMR Airports in India has finalised terms for what will be its largest corporate debt offering. The company aims to raise over 60 billion rupees (685.13 millions dollars).

The second largest airport operator in the country will raise 18 billion rupies through 18-month bonds. The issue will be primarily placed with mutual fund.

The sale of bonds for three years will raise an additional 42 billion rupees, and large foreign lenders are expected to absorb the supply.

Sources said that the company would pay a coupon of 10.50% annually on both maturities and the fundraising was expected to be complete in the next couple of days.

The sources all requested anonymity, as the discussions are private.

GMR Airports didn't respond to an email asking for comment.

Crisil has rated the bonds of this company A+. The company manages several airports, including those in Delhi, Hyderabad and Bangalore. $1 = 87.5740 Indian Rupees (Reporting and editing by Dharamraj Dhutia, Khushi malhotra)

(source: Reuters)