Bangalore International Airport Limited (BIAL), operator of Kempegowda International Airport Bengaluru (BLR Airport), 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.”
SBI Caps has been associated with BIAL since their inaugural bond issuance in 2021 and takes pride in being part of this landmark transaction. Overwhelming investor interest helped BIAL narrow their credit spreads and get a structure which aligns to their capital expenditure plans, said Arnab Choudhury, Group Head DCM, SBI Caps.
The transaction witnessed overwhelming investor demand across the spectrum, including banks, insurance companies, Infrastructure Debt Funds (IDFs) and Public Financial Institutions (PFIs), reflecting the market’s strong belief in BIAL’s long-term vision and governance.
BLR Airport is India’s first greenfield airport developed under the PPP (Public Private Partnership) model. It is the busiest airport in South India and the third largest in the country. In FY 2024, the airport handled more than 41 million passengers and 502,480 metric tonnes of cargo. With 43 years remaining in the 60-year concession period, BIAL remains committed to expanding its infrastructure and enhancing passenger experience while driving long-term value creation for all stakeholders.
