BIAL Completed India’s Largest Unlisted NCD Issuance Worth ₹9,000 Crore for Airport Expansion.

Economy Business

In August 2025, Bangalore International Airport Limited (BIAL), the Joint Venture (JV) operating Bengaluru’s Kempegowda International Airport in Karnataka, successfully completed India’s largest unlisted Non-Convertible Debentures (NCDs) issuance in the airport sector, raising a total of ₹9,000 crore to support infrastructure expansion and debt refinancing.


      - The total ₹9,000 crore fundraising has been divided into two tranches—₹4,362 crore was raised on July 25, 2025, while the remaining ₹4,638 crore is scheduled to be raised in early October 2025. This phased approach supports both immediate refinancing and phased infrastructure rollout.

      - The State Bank of India Capital Markets (SBICAPS) acted as the sole arranger for the issuance of these unlisted NCDs, demonstrating strong institutional backing and credibility in India’s financial markets.

      - With a refinancing tenure of 15 years, BIAL aims to conserve operational capital, enabling it to strategically allocate resources toward upcoming airport infrastructure development projects, including terminal and runway upgrades.

Main Point :-   (i) This NCD issuance brings substantial financial benefits to BIAL by lowering borrowing costs. Key factors include its AAA credit rating, shift from Marginal Cost of funds-based Lending Rate (MCLR)-linked loans to a fixed interest rate, and an extended maturity profile.

      (ii) The ₹9,000 crore will be utilised not only to refinance existing high-cost debt but also to fuel future infrastructure expansion of Kempegowda International Airport, enhancing its capacity and efficiency as one of India’s busiest aviation hubs.


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