Bangalore International Airport Raises Over Rs 10,206 Crore From Banks
Bangalore International Airport Ltd.’s Rs 13,352-crore expansion plan has achieved financial closure with tying up of a Rs 10,206-crore loan from a consortium of lenders including the State Bank of India.
The second phase expansion plan of the country’s third largest aerodrome, announced in last October, entails construction of a new terminal, a second runway, access roads, and a multi-modal transport hub, which is scheduled to be completed by March 2021.
The entire project has to be funded in a mix of 80 percent debt and 20 percent equity.
BIAL has raised Rs 10,206 crore through a syndicate of banks, including SBI and Axis Bank, it said in a release.
While Axis Bank has advanced Rs 5,106 crore, SBI has sanctioned Rs 5,100 crore for the project, it said adding the loan will be repaid over a period of 10 years with a 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, managing director and chief executive officer of BIAL.
Canadian Non-Resident Indian Prem Watsa-owned Fairfax holds 54 percent and Siemens Projects Ventures 20 percent in BIAL, the joint venture that runs the Bengaluru's Kempegowda International Airport.
Of the remaining 26 percent, Karnataka government and the Airports Authority of India hold 13 percent each.
“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 Rs 500 crore and the balance debt amount is being funded currently by SBI as the lead Bank along with Axis Bank,” said PN Prasad, Deputy Managing Director, State Bank of India.
The Bangalore airport handled 33.3 million passengers in the fiscal ended March 2019.
“We are delighted to partner with BIAL as they progress towards building a world-class airport for the city of Bengaluru,” said Rajiv Anand, executive director for wholesale banking, Axis Bank.