The Bangalore International Airport Limited (BIAL) announced on Tuesday the financial closure for its Rs 13,352-crore infrastructure expansion that includes construction of the terminal-2 and associated projects.
Operator of Kempegowda International Airport, Bengaluru, BIAL said it has raised Rs 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 Rs 5,106 crore, SBI sanctioned Rs 5,100 crore for the project that is scheduled for completion by mid-2021, BIAL said in a statement here.
The debt would be repaid over a period of 10 years with a one-year moratorium post completion of the project, it said.
BIAL's managing director and CEO Hari Marar said the timely financial closure would now enable BIAL to focus on expansion and ensure that the projects were delivered within timelines.
"Our aim is to ensure that we not only deliver an iconic asset which the people can be truly proud of, 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," Marar added.
In 2018-19, the airport welcomed 33.3 million passengers and the volumes are expected to grow in the coming years as the country is touted to be the third largest aviation market in the world, the statement added.