Logistics

BIAL raises ₹10,206-crore from banks for expansion

Our Bureau Bengaluru | Updated on August 06, 2019 Published on August 06, 2019

A view of the expanded terminal building of Kempegowda International Airport in Bangalore. (file photo)   -  KSL

The Kempegowda International Airport’s Terminal 2 is funded by Axis Bank Rs 5,106 crore & SBI Rs 5,100 cr

Bangalore International Airport Ltd (BIAL), the operator of Kempegowda International Airport in Bengaluru, has achieved  financial closure for its ₹13,352-crore infrastructure expansion that includes construction of Terminal 2 and associated projects.

BIAL has raised ₹10,206 crore through a syndicate of banks, including State Bank of India and Axis Bank, with the project to be funded in a debt-equity ratio of 80:20. While Axis Bank has advanced ₹5,106 crore, SBI has sanctioned ₹5,100 crore for the project that is scheduled  to be completed by mid-2021.

The debt, with a door-to-door tenor of approximately 14.25 years, will be repaid over a period of 10 years with a one-year moratorium, post completion of the project.

Hari Marar, MD & CEO, BIAL, said “The timely financial closure will enable us to focus on expansion and ensure that the projects are delivered within timelines.”

Passenger traffic

In 2018-19, the  Bengaluru airport welcomed 33.3 million passengers and the volumes are expected to grow in the coming years.

Published on August 06, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.