BIAL Raises ₹9000 Crore via Private Bond Placement to Support Expansion Plans
Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport Bengaluru (BLR Airport), has completed a private placement of Non-Convertible Debentures (NCDs), raising ₹9,000 crore. This marks the largest unlisted bond issuance in India’s airport sector to date.
The transaction is being executed in two tranches: ₹4,362 crore was completed on July 25, 2025, and ₹4,638 crore is scheduled for early October 2025. SBICAPs acted as the sole arranger for the issuance.
Strengthening Capital Structure for Growth
The 15-year tenor refinancing initiative allows BIAL to reallocate capital more efficiently and support future development projects. The shift from MCLR-linked borrowing to fixed-rate debt, along with an extended maturity period and a AAA credit rating, is expected to lower borrowing costs and improve financial flexibility.
Bhaskar Rao, Chief Financial Officer of BIAL, commented, “This transaction reflects investor trust in BIAL’s long-term strategy. The refinancing enables us to streamline our capital structure and support planned infrastructure developments while creating value for passengers and airline partners.”
Investor Confidence and Strategic Alignment
According to Arnab Choudhury, Group Head DCM at SBICAPs, long-standing collaboration with BIAL since 2021 and sustained investor interest contributed to favourable pricing and structuring that aligns with BIAL’s capital expenditure goals.
The issuance attracted a wide range of institutional investors, including banks, insurance companies, Infrastructure Debt Funds (IDFs), and Public Financial Institutions (PFIs), highlighting confidence in BIAL’s governance and future outlook.
Focus on Infrastructure and Passenger Experience
BLR Airport is India’s first greenfield airport developed under the PPP (Public Private Partnership) model. It is currently South India’s busiest airport and ranks third nationally. In FY 2024, it handled over 41 million passengers and approximately 502,480 metric tonnes of cargo.
With 43 years remaining in its 60-year concession period, BIAL continues to prioritise infrastructure expansion and enhanced passenger services, while maintaining long-term value creation for its stakeholders.
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