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.