BIAL to raise Rs 70 billion to fund expansion plan

BIAL to raise Rs 70 billion to fund expansion plan

Bengaluru International Airport Ltd (BIAL) has decided to raise around Rs 70 billion in debt from banks to fund its second-phase expansion plan.

Quoting sources close to the development, a Business Standard report said while the company had received approval, in principle, from its lenders for the proposal, it is waiting for the revised tariff order on user development fee (UDF) from the Airports Economic Regulatory Authority of India (AERA).

“The revised tariff order is expected to be announced next week, and after which, it will immediately start the process,” the sources were quoted as saying.

It is said that the airport is planning to raise debt capital from a string of public sector banks. BIAL, according to the report, had aborted its earlier plan of raising money through issue of bonds, due to the tepid interest from investors along with rising interest rates in recent times.

Image Credit : bsmedia.business-standard.com