Abu Dhabi's Largest SWF Sets Eyes on Indian Aviation Markets

The Abu Dhabi Investment Authority (ADIA), the UAE’s largest sovereign wealth fund, is set to invest approximately $750 million in the debt of India’s GMR Group, gaining a foothold in one of the fastest-growing aviation markets globally. This strategic investment will allow GMR to reduce its pledged shareholding in its airports business.

ADIA's investment is in the structured debt instruments of a unit under GMR Enterprises (GEPL), the holding entity for GMR Group, which owns a 25% stake in GMR Airports. The funds will be used to refinance external debt held by GMR Enterprises, which aims to reduce its pledged shareholding in GMR Airports significantly.

As of the latest report, GMR Enterprises' total debt stood at 44.77 billion rupees ($532.5 million), marking a 4% year-on-year increase. The company views this infusion from ADIA as crucial for debt repayment, enabling stronger financial support for the continued growth of GMR Airports.

The Indian aviation market is poised for significant expansion, with domestic passenger traffic expected to reach 300 million by 2030, further highlighting the potential of this investment.