MIAL ties-up Rs 4200cr for Chhatrapati Shivaji airport

Mumbai, April 24, 2007: Mumbai International Airport Pvt. Ltd (MIAL), the GVK-led consortium which is modernising the Chhatrapati Shivaji International Airport (CSIA) at Mumbai, today achieved financial closure. MIAL has tied up its required long-term fund based debt requirements of about Rs. 4,200 crores with a consortium of banks and financial institutions led by Industrial Development Bank of India Limited (IDBI).

The investment will be utilised with the objective of developing CSIA into a world-class airport handling passenger traffic of 40 million per annum. Some of the key upgrades will include:

· Building a common integrated terminal for both domestic and international passengers with best in class systems and amenities

· Upgrading and developing the runway system with taxiways and rapid exit taxiways to improve the operating efficiencies and increase the Air Traffic Movements (ATMs)

· Developing infrastructure on the city-side and creating efficient access to the terminals

IDBI is the Lenders Agent while UTI Bank Ltd is acting as Escrow Banker and Trust and Retention Account Banker. The consortium comprises Andhra Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, India Infrastructure Finance Company Ltd. (IIFC), Indian Bank, IDBI, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank, United Bank of India, UTI Bank Ltd. and Vijaya Bank.

Commenting on the financial closure, G V Krishna Reddy, Chairman, MIAL said "Our vision is to transform CSIA into an airport which is benchmarked on global standards of airport operations and service. Achieving financial closure is a significant milestone in realising this vision. We thank the consortium of lenders for their support for funding the modernisation of CSIA."

The loan tenure is for a period of 17 years, door to door, covering a seven-year loan drawl period. MIAL has procured an interest rate, which is benchmarked to three years Government Security plus a margin of 215 basis points. The repayment of the loan will commence from the end of the seventh year and will be repaid in 120 monthly payments thereafter.

About Mumbai International Airport Pvt. Ltd. (MIAL)

Mumbai International Airport Pvt. Ltd. (MIAL) is a joint venture between the GVK-SA consortium and Airports Authority of India. MIAL was awarded the mandate of modernizing and upgrading Chhatrapati Shivaji International Airport (CSIA).

About GVK

GVK is amongst India's largest infrastructure developers with experience and expertise spanning areas including power, roads, airports and urban infrastructure. Until date GVK has invested over Rs. 5,000 crore into infrastructure projects and has on hand projects in the pipeline of over Rs. 12,000 crore.