GMR Infrastructure Limited said on Friday that the Kuwait Investment Authority has agreed to invest $300 million (Rs 2,000 crore) in the company. 

Kuwait Investment Authority, one of the largest and oldest sovereign wealth funds of the world, agreed to subscribe to 60-year-long Foreign Currency Convertible Bonds (FCCBs) due 2075 to be issued by GMR.

The conversion price of Rs.18 represents approximately 30% premium to the 3-month average share price of GMR.

The proceeds from the FCCB will be primarily used to repay certain outstanding obligations of GMR and its subsidiaries, GMR Infra said in a statement.

The completion of the transaction and receipt of funds will be subject to fulfillment of customary closing conditions for transactions of this nature and procuring necessary approvals.

Announcing the transaction, GMR Group chairman G. M. Rao said this is the largest bilateral investment of Kuwait Investment Authority in India.

"This investment shows confidence of sovereign investors in the long term policies being implemented by the Government of India, particularly in the infrastructure space," he said.

GMR's FCCB issuance is the longest tenor convertible issuance out of India and will have several "equity-like" features such as long tenor, unsecured and subordinated status and mandatory conversion.

Farouq Bastaki of Kuwait Investment Authority said they believe that GMR is well positioned to play an important role in India, as the country aggressively expands its infrastructure footprint in the coming years.

"We look forward to participating in GMR's growth as a long term investor and build a deeper relationship," he said.