To finance the infrastructure expansion of the Kempegowda International Airport (KIA) here with a Terminal-2 and associated projects, its operator has raised Rs 10,206 crore from a consortium of banks, including the State Bank of India and Axis Bank.
Announcing the financial closure for the Rs 13,352 crore expansion plan, the Bangalore International Airport Limited (BIAL) on Tuesday declared that the project will 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, 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.
BIAL Managing Director and Chief Executive Officer Hari Marar said the timely financial closure will now enable the airport to focus on expansion and ensure that the projects are delivered within timelines.
“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 Cr. The balance debt amount is being funded currently by SBI as the Lead Bank along with Axis Bank,” said P N Prasad, SBI's Deputy Managing Director, Commercial Clients Group.
BIAL said the timely capital infusion will be a huge boost for KIA. In the fiscal 2018-19, the airport catered to 33.3 million passengers, registering a 23.8% year-on-year growth. The volumes are expected to grow in the coming years as India is touted to be the third largest aviation market in the world.
Since its commerical launch in May 2008, the airport has today emerged as the country's third busiest. Over 37 passenger airlines and 12 cargo airlines link Bengaluru to the rest of the world.
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