DIAL raises Rs 1,630 crore at higher rate from local banks

New Delhi: Despite low lending rates and easy liquidity conditions prevailing in global financial markets, Delhi International Airport (DIAL) has raised $350 million (Rs 1,630 crore) from three domestic banks at around 500 basis points over six-month LIBOR.
LIBOR, or London Interbank Offered Rate, currently rules around 0.5%. Last week, ICICI Bank raised $750 million, equivalent to Rs 3,500 core through dollar-denominated debt. The 64-month fixed rate instruments carry a coupon rate of 5.5%.
Axis Bank has committed $150 million and Union Bank $75 million while Rs 125 crore will be drawn from ICICI Bank that has sanctioned $200 million, said an executive with one of the banks. The 10-year loans, raised in the form of dollar-denominated external commercial borrowing (ECB), will be utilised within the next 2-3 months, said Sidharath Kapur, chief financial officer of DIAL.
Seven foreign banks including Abu Dhabi Commercial Bank, Calyon and KFW and domestic banks including ICICI, which had committed to lend the amount in 2007 at 185 basis points over LIBOR, backed out in early 2009 due to a sharp increase in interest rates triggered by the global financial crisis.
DIAL, a consortium between GMR Infrastructure, Airport Authority of India, Fraport of Germany and Malaysian Airport, is developing the Delhi airport.
23/11/09 Arun Kumar/Economic Times

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Categories: Airports Nov 2009