Bangalore International Airport Limited (BIAL) has achieved financial closure for its Rs 13,352 crore second phase expansion plan at Kempegowda International Airport in the capital city of Karnataka.
According to BIAL, as part of this financial closure, the company has raised Rs 10,206 crore in debt from a syndicate of banks including the State Bank of India and Axis Bank.
The project, which is being funded on a debt to equity ratio of 80:20, has received loans of Rs 5,106 crore from Axis Bank and Rs 5,100 crore from the SBI. The fund will be utilised to construct the second terminal at the airport apart from pursuing other related projects.
BIAL added that the debt component would be repaid over a period of 10 years with one-year moratorium post completion of the project.
Hari Marar, MD & CEO at BIAL, “The timely financial closure will now enable us to focus on expansion and ensure that the projects are delivered within timelines.”
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