Bengaluru: Bengaluru International Airport Ltd (BIAL) is moving ahead with its plan to raise around Rs 70 billion in debt from banks to fund its second-phase expansion plan. Sources close to the development 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 said.
Though it was not immediately known which banks would participate in the fundraising activity, the airport is believed to be raising debt capital from a clutch of public sector banks. Sources also said the airport had aborted its earlier plan of raising money through issue of bonds, given the tepid interest from investors along with rising interest rates in recent times.
BIAL, the third largest airport in the country, is aggressively pursuing its second-phase expansion plan. It will set up a second runway and a new terminal. This has been done to deal with the increasing traffic, which has exceeded its current capacity. While the current terminal allows BIAL to handle 20 million passengers per annum, it has already reached a traffic level of 27 million. The firm expects the traffic levels to reach 80 million by 2030. “Given the rising traffic level, we have already started working on our expansion plans with building up the second runway. We are putting the equity capital upfront before we raise the debt,” said Bhaskar Anand Rao, chief financial officer of BIAL.
24/08/18 Debasis Moohapatra/Business Standard
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Though it was not immediately known which banks would participate in the fundraising activity, the airport is believed to be raising debt capital from a clutch of public sector banks. Sources also said the airport had aborted its earlier plan of raising money through issue of bonds, given the tepid interest from investors along with rising interest rates in recent times.
BIAL, the third largest airport in the country, is aggressively pursuing its second-phase expansion plan. It will set up a second runway and a new terminal. This has been done to deal with the increasing traffic, which has exceeded its current capacity. While the current terminal allows BIAL to handle 20 million passengers per annum, it has already reached a traffic level of 27 million. The firm expects the traffic levels to reach 80 million by 2030. “Given the rising traffic level, we have already started working on our expansion plans with building up the second runway. We are putting the equity capital upfront before we raise the debt,” said Bhaskar Anand Rao, chief financial officer of BIAL.
24/08/18 Debasis Moohapatra/Business Standard
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