BIAL raises Rs10,206 crore through banks, achieves financial closure

August 6, 2019: The Bangalore International Airport Limited (BIAL) has announced the closure for its Rs13,352 crore infrastructure expansion that includes construction of the state-of-the-art Terminal 2 and associated projects to be funded in a debt-equity ratio of 80:20.

The operator of Kempegowda International Airport, Bengaluru (KIAB) raised Rs10,206 crore [State Bank of India sanctioned Rs5,100 crore and Axis Bank has advanced Rs5,106 crore] for the project that is scheduled for completion 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.

“Our aim is to ensure that we not only deliver an iconic asset of which the people can be truly proud, but also set benchmarks in the way such projects are delivered – at a cost that is affordable and to the highest standards of corporate governance,” said Hari Marar, MD & CEO, BIAL.

“SBI, being the existing lender to BIAL, has already funded certain portion of the Phase 2 Project, including earthworks for the runway to the extent of around Rs500 crore and the balance debt amount is being funded currently by SBI as the Lead Bank along with Axis Bank,” said PN Prasad, DMD-CCG), State Bank of India.

In FY2018-19, the BLR Airport welcomed 33.3 million passengers and the volumes are expected to grow in the coming years as India is touted to be the third largest aviation market in the world.

Rajiv Anand, executive director-wholesale banking, Axis Bank said, "We are always keen to showcase the power of the One Axis platform to our clients as we work with them to come up with innovative financing solutions. Our transaction with BIAL is one such example where bank was able to structure a loan working with very credible sponsors. We are delighted to partner with BIAL as they progress towards building a world-class airport for the city of Bengaluru."