GMR Airports’ subsidiary, GMR Cargo and Logistics (GCLL), has secured a term loan facility of up to Rs 7.5 billion from Axis Bank to support the development of the upcoming cargo city at Delhi’s Indira Gandhi International Airport (IGIA), according to a recent exchange filing.

The loan will fund the construction of the cargo city project, which spans 50.5 acres within IGIA. The airport is operated by Delhi International Airport Ltd (DIAL), itself a subsidiary of GMR Airports.

To secure the facility, GMR Airports has provided a Sponsor Support Undertaking (SSU), along with a pledge, a Non-Disposal Undertaking (NDU), or a combination of both, on 51 per cent of its shares in GCLL in favour of Axis Bank.

The company stated that the SSU will remain valid throughout the construction period of Phase 1, plus one year of operations, unless a different arrangement is agreed between GMR Airports and Axis Bank.

Under the SSU, GMR Airports has committed that all subordinated loans extended to GCLL will remain subordinated to the bank’s facility. The company must also inject additional funds into GCLL in the event of a cost overrun in the first phase or if GCLL falls short in meeting repayment obligations.

For the cargo city development, GCLL and DIAL entered into a concession agreement on 26 September, further formalising the project framework.