The Bangalore International Airport Limited (BIAL) has achieved financial closure for its Rs 13,352 crore second phase expansion plan at Kempegowda International Airport in Bengaluru. As part of this financial closure, BIAL has raised Rs 10,206 crore in debt from a syndicate of banks including the State Bank of India (SBI) and Axis Bank, the company said.
The project, which is being funded on a debt to equity ratio of 80:20, has received loans of Rs 5,106 crore from Axis Bank and Rs 5,100 crore from the SBI. The fund will be utilised to construct the second terminal at the airport apart from pursuing other related projects.
The company said that the debt component would be repaid over a period of 10 years with one-year moratorium post completion of the project. "The timely financial closure will now enable us to focus on expansion and ensure that the projects are delivered within timelines," said Hari Marar, MD & CEO at BIAL.
During last financial year, BIAL had seen a traffic of 33.3 million passengers, which is likely to grow in the coming years as India is seen as the third largest aviation market in the world.
Currently, India-born Canadian investor Prem Watsa-promoted Fairfax holds 54 per cent stake in BIAL, while Siemens Project Ventures holds 20 per cent. The remaining stake lies with the Centre and the Karnataka government in equal proportions.
Under the concession agreement with the Centre valid till 2038, BIAL has the exclusive rights to handle the development, design, financing, construction, commissioning, maintenance and management of the airport.