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

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.