BIAL completes bond issuance, raises ₹9,000 crore

Bangalore International Airport Limited (BIAL) 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. 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, Bangalore International Airport Limited (BIAL), added, “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.”