KKR to lend Rs 1,000 crore to GMR Infra's promoter

Sources with direct knowledge share that leading private equity firm KKR is close to providing structured debt worth Rs 1,000 crores to GMR Infrastructure's promoter entity, GMR Infra Ventures. GMR is expected to infuse this cash as equity funding in the listed company, GMR Infra, a source said.

KKR is expected to provide a customised loan facility to the promoter company for a long term of around 5 to 7 years. ET Now learns that as part of the deal, KKR may be expecting returns of around 18 per cent, it is expected to be a combination of assured returns with an upside linked to the stock performance of GMR Infra.

KKR did not offer any comment to an ET Now query. GMR's spokesperson, in an e-mail statement said, "As a company policy we do not comment on market speculation."

Sources say that GMR's promoters may use a part of this fund for the Rs 567 crore warrant issue by GMR Infra. "GMR Infrastructure is in need of equity fundian with its net debt position of over Rs 35,000 crore," an expert said.