Kempegowda Airport Set for Major Expansion with $1.1 Billion Bond Plan
Kempegowda Airport Set for Major Expansion with $1.1 Billion Bond Plan
Kempegowda International Airport in Bengaluru is set to raise $1.1 billion through local currency bonds to refinance debt and support its major expansion.
Kempegowda International Airport in Bengaluru is planning a big upgrade. Thecompany that runs the airport, Bangalore International Airport Limited (BIAL), wants to raise $1.1 billion (around ₹9,000 crore) by issuing bonds.
BIAL will make us of this money to:
- Pay off older loans (refinance existing debt)
- Expand the airport to handle more passengers in the future
BIAL is talking to major banks like State Bank of India, ICICI Bank, and Axis Bank to invest in these bonds.
Bond DetailsThe bonds might run for up to 15 years.The interest (called a coupon) may be around 8.15%, but could change based on market conditions.These bonds will be unlisted, meaning they won’t be sold on the stock market.
Why Is This Important?
India is building and upgrading airports to support growing air travel. BIAL's long-term goal is to expand Kempegowda Airport to serve over 100 million passengers every year.
Credit rating agencies like ICRA have given BIAL a AAA rating, which means it is very safe for investors.
