GMR Airports in talks to raise $500 million.

GMR Airports Ltd., which has kept in abeyance its initial public offering plans, is in discussions with bankers to raise $500 million in dollar bond sale as the rates in international markets are a benign ahead of a possible spike because of economic recovery in the US.

The company, which runs the New Delhi and Hyderabad Airports, may sell bonds with a tenor of 15-years which will help it reduce its interest expenses as it would replace the expensive domestic loans with the fund raise, said three people familiar with the idea.

'Since the initial public offer of the company will take some time, the company is looking to raise some funds immediately,' said one of the bankers, who did not want to be identified. 'The company will be able to raise the money, depending on the rating it gets for the bond. The pricing too will depend on that.'

ET