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

Economy Business | Dated: 05 Aug 2025

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.

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

Recently, how much amount did Bangalore International Airport Limited (BIAL) raise through India’s largest unlisted Non-Convertible Debentures (NCD) issuance for airport expansion?

Correct Answer: ₹9,000 crore

🚀 Quick Recap: