Betting big on Bengaluru: BIAL raises ₹9,000 crore through issuance of bonds

Bengaluru: Bangalore International Airport Limited (BIAL), operator of the Kempegowda International Airport in Bengaluru, has successfully concluded the largest unlisted private placement of Non-Convertible Debentures (NCDs) in India’s airport sector, raising a total of ₹9,000 crore, an official press release has said.

The transaction is being undertaken in two tranches — ₹4,362 crore completed on July 25, 2025, and ₹4,638 crore scheduled for early October 2025.

SBICAPs acted as the sole arranger for this landmark issuance.

With a 15-year tenure, the refinancing allows BIAL to conserve capital and focus resources on funding future expansion plans. The transaction also provides significant savings in borrowing cost, driven by the AAA credit rating, a shift from MCLR-linked (Marginal Cost of funds-based Lending Rate) to fixed interest rate, and the extended maturity profile.

Bhaskar Rao, Chief Financial Officer, BIAL, said: “This landmark issuance is a significant milestone for BIAL as it not only reflects strong investor confidence in our long-term vision, but also strategically strengthens our financial position ahead of the next phase of expansion. The refinancing enables us to optimise our capital structure. Importantly, the long-tenor structure and improved credit rating will translate into greater value for our stakeholders, including passengers and airline partners, through enhanced affordability and infrastructure development.”

SBICaps has been associated with BIAL since their inaugural bond issuance in 2021.

The transaction witnessed overwhelming investor demand across the spectrum, including banks, insurance companies, Infrastructure Debt Funds (IDFs) and Public Financial Institutions (PFIs), reflecting the market’s strong belief in BIAL’s long-term vision and governance.

Bengaluru airport is India’s first greenfield airport developed under the Public Private Partnership model.

It is the busiest airport in South India and the third largest in the country.

In FY 2024, the airport handled more than 41 million passengers and 502,480 tonnes of cargo.

In terms of cargo, the airport continues to be at the top slot for processing perishable cargo in India for the fourth consecutive year.

BIAL’s growth is powered by Fairfax India Holdings Corporation, its majority private promoter.