India's GMR Infrastructure Limited said it is raising $300 million from Kuwait Investment Authority by selling foreign currency convertible bonds due in 2075.

GMR will use the funds to repay some outstanding obligations, it said in a statement.

The part of proceeds from the bond issue will be used to buy out the existing private equity investors in Delhi International Airport Limited (DIAL), who are asking for exit after four years remained invested, said Indian media reports.

DIAL is a majority owned subsidiary of GMR InfrastructureBSE -14.64 per cent that operates Indira Gandhi International Airport.

A group of private equity investors - SBI-Macquarie, Standard Chartered, JM Financial-Old Lane -  came on board four years ago via a structured deal in DIAL. These three had cumulatively invested Rs 1,458 crore in GMR Airports in March 2011 by subscribing to its compulsorily convertible preference shares (CCPS), it stated.

As per their agreement, the funds were given an option to exit through an IPO or alternatively via a promoter buyback with an assured 15-18 per cent IRR. If both routes failed, the investors had fallback right to convert the CCPS to a 49 per cent equity stake in the airport holding company. -Reuters