BIAL.
Cyril Amarchand Mangaldas and Luthra and Luthra Advise on BIAL’s Record Rs 9,000 Crore Private Placement: BENGALURU – Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport, has successfully raised an aggregate amount of ₹9,000 crore (approximately $1.02 billion) through a private placement of secured, unlisted, rated, redeemable, taxable non-convertible debentures (NCDs). The capital infusion, conducted in multiple tranches, marks the largest unlisted private placement of NCDs in India’s airport sector, setting a new benchmark for infrastructure financing in the country.
The funding initiative saw an initial tranche of ₹4,362 crore (approximately $498 million) with a provision for an additional investment of ₹4,638 crore (approximately $529 million). BIAL will utilize these funds to refinance its existing borrowings, which were taken for the development of the new Terminal 2 and the airport’s second runway. The remaining capital will be directed towards funding future infrastructure expansion projects at the airport. This strategic refinancing, with a 15-year tenure, is expected to provide significant savings in borrowing costs and a fixed interest rate, driven by the airport’s AAA credit rating.
The successful completion of this complex transaction was a result of meticulous legal and financial advisory. Cyril Amarchand Mangaldas, a prominent Indian law firm, acted as the investors’ counsel. The firm’s team, led by Partner Amey Pathak and Partner Yash Jain, was instrumental in advising on the deal. The team’s expertise in banking and finance, with support from key associates, helped navigate the legal intricacies of the large-scale NCD issuance.
Adding to the legal firepower, Luthra and Luthra Law Offices India represented Indian Infrastructure Finance Company Limited, one of the key investors in the private placement. The Luthra team, led by Partner Girish Rawat, provided specialized counsel to the financial institution, ensuring their interests were protected throughout the transaction.
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Bangalore International Airport Limited (BIAL) is a public-private consortium responsible for the design, development, and operation of Kempegowda International Airport. As India’s third-busiest airport and the busiest in South India, BIAL is a critical piece of the country’s aviation infrastructure.
The company’s continuous investment in expansion and modernization, as seen with the development of Terminal 2 and a second runway, underscores its commitment to handling growing passenger traffic and maintaining its position as a leading global gateway. This latest funding round is a testament to the strong investor confidence in BIAL’s long-term vision and its strategic importance to the Indian economy.
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