New Delhi, Nov. 19 -- GMR Airports Ltd (GAL) plans to refinance foreign currency loans of Hyderabad airport by issuing rupee-denominated non-convertible debentures (NCDs) worth up to Rs.2,150 crore as it continues to reduce borrowing costs, a company executive said.

"The next refinancing we are looking at is for Hyderabad airport 2026 foreign currency bonds where the board has given approval for issuing rupee-denominated NCDs," Sourabh Chawla, executive director (finance and strategy) at GAL, said on an earnings call last week.

Switching to rupee-denominated NCDs from foreign currency bonds eliminates the risk of increasing debt service costs if the rupee depreciates and stabilizes future payments. Such refinancing also leads to a lower...