GMR-Megawide Cebu Airport Corporation (GMCAC) a joint venture between GMR Infrastructure (40% shareholding) and Megawide Construction Corporation (60% shareholding) has signed financing documents of its Mactan Cebu International Airport located in Cebu, Philippines.

The financing will fund 70% of its total project cost of Php 33 billion (approximately USD 750 mn).

BDO Capital & Investment Corporation acted as Lead Arranger to the transaction. The loan is being financed by a consortium of six banks.

Total equity contribution of GMR to GMCAC will be approximately USD 90 million, out of which GMR has already invested USD 48 million and do not envisage any further investment in the near future.

GMCAC shall be responsible for construction, development, renovation, expansion and operation of the Mactan Cebu International Airport for a period of 25 years as provided in the Concession Agreement.

This marks a key milestone for GMCAC in its journey to transform MCIA into a world class airport. MCIA is the first airport in Philippines to be privatized under the administration’s ambitious PPP programme aimed at modernizing key infrastructure assets.

Commenting on this occasion, G.M. Rao, chairman, GMR Infrastructure said, ''The financial closure of the project signifies the confidence of the banks in the abilities of GMR and our partner Megawide. GMR Group has proven credentials in airport operations and modernization and we are confident that we will undertake this prestigious project in a timely manner and deliver an airport that Cebuanos and Filipinos will be proud of.''

Shares of the company declined Rs 0.15, or 0.89%, to trade at Rs 16.75. The total volume of shares traded was 706,832 at the BSE (12.54 p.m., Monday).