Updated: August 6, 2019 4:28:45 pm
The Bangalore International Airport Limited (BIAL), operator of Kempegowda International Airport, Bengaluru (KIAB), announced the financial closure for its Rs 13,352 crore infrastructure expansion that includes the construction of the state-of-the-art Terminal 2 and associated projects.
According to the press release by BIAL, it has raised Rs. 10,206 crore through a syndicate of banks, including State Bank of India (SBI) and Axis Bank, with the project to be funded in a debt-equity ratio of 80:20. While Axis Bank has advanced Rs 5,106 crore, SBI has sanctioned Rs 5,100 crore for the project that is scheduled for completion by mid-2021. The debt will be repaid over a period of 10 years with a one-year moratorium post completion of the project.
P.N. Prasad (DMD-CCG), State Bank of India, said, “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.”
Hari Marar, MD & CEO, BIAL, said, “The timely financial closure will now enable us to focus on expansion and ensure that the projects are delivered within timelines.”
Even as BLR welcomed 33.3 million passengers in 2018-2019 and the volumes are expected to grow in the coming years, the timely capital infusion will be a huge boost for Bengaluru Airport as India is touted to be the third-largest aviation market in the world.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.