BENGALURU: Bangalore International Airport Ltd (BIAL) announced the financial closure for its Rs 13,352 crore infrastructure expansion on Monday, which includes the construction of Terminal 2.
BIAL has raised Rs 10,206 crore through various banks with the project to be funded in a debt-equity ratio of 80:20. While Axis Bank has advanced Rs 5,106 crore, State Bank of India (SBI) has sanctioned Rs 5,100 crore for the project, which is scheduled for completion by mid-2021. The debt, with a tenure of approximately 14 years, will be repaid over a period of 10 years with a one-year moratorium post completion of the project, said a BIAL spokesperson.
P N Prasad of SBI said, “Being the existing lender, SBI has already funded certain a portion of the phase-2 project, including earthworks for the runway to the extent of around Rs 500 crore.”
Hari Marar, MD and CEO, BIAL, said, “The timely financial closure will now enable us to focus on expansion and ensure that the projects are delivered within timelines,” he said.