AAI to raise Rs 300 cr for airports modernisation

Mumbai: The Airports Authority of India (AAI) has invited bids to raise funds to the tune of Rs 300 crore from the bond market to meet its capital expenditure requirements, its officials said today.
“Bids have been issued to institutional investors. We are raising Rs 300 crore through private placement. The proceeds will be used to meet our capex requirement,” the officials, requesting anonymity, said.
AAI has already approached primary dealers to invest in the bonds which are for a five-year period.
With airlines ordering more aircraft, the capacity of airports has to be enhanced at a fast pace, they said, adding that the country needed to at least double the airport and runway capacities to support the major fleet expansion plans announced by the airlines.
Air traffic would almost double in the next few years and “we have to upgrade our newly constructed airports as well as the older ones to keep pace with the demand”, the officials said, adding that the air traffic demand would remain strong during the coming decade.
17/02/11 PTI/Business Line

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Categories: Airports Feb 2011