BIAL Completes Landmark Rs 9,000 Crore NCD Issuance

Bangalore International Airport Limited (BIAL) successfully issued Rs 9,000 crore in unlisted non-convertible debentures, the largest in India's airport sector. The refinancing, completed in two tranches, reflects strong investor confidence and allows BIAL to save on borrowing costs and concentrate on future expansion plans.

Bangalore International Airport Limited (BIAL) has marked a significant achievement by completing the issuance of Rs 9,000 crore in unlisted non-convertible debentures (NCDs). This ultimately sets a new record in India's airport sector for a private placement of NCDs.

The issuance was carried out in two phases, with the first tranche of Rs 4,362 crore closed on July 25 and the second tranche of Rs 4,638 crore finalized in early October. This operation reportedly received overwhelming interest from a diverse range of investors, including banks, insurance companies, and public financial institutions, highlighting market confidence in BIAL's governance and strategic vision.

Having a 15-year tenure and backed by AAA credit ratings, this refinancing allows BIAL to reduce borrowing costs, conserving capital for future expansions. BIAL's CFO Bhaskar Rao stated that the transaction strategically strengthens their financial position as they prepare for the next phase of growth. The NCD's structure also aligns with BIAL’s capital expenditure plans and stakeholders' interests.