BIAL raises ₹9,000 crore via India’s largest unlisted airport bond issue
The fundraising is being executed in two tranches, with ₹4,362 crore completed in July, and the remaining ₹4,638 crore scheduled for early October.
Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport Bengaluru (BLR Airport), has raised ₹9,000 crore through the largest unlisted private placement of non-convertible debentures (NCDs) in India’s airport sector.
The fundraising is being executed in two tranches, with ₹4,362 crore completed on July 25, 2025, and the remaining ₹4,638 crore scheduled for early October. SBICAPs is the sole arranger for the transaction.
The NCDs have a 15-year tenure and are being used to refinance existing debt, enabling BIAL to conserve capital and direct resources toward future expansion. The refinancing also reduces borrowing costs by shifting from MCLR-linked interest rates to fixed rates and benefits from BIAL’s AAA credit rating.
“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,” said Bhaskar Rao, Chief Financial Officer, BIAL. “The refinancing enables us to optimise our capital structure. Importantly, the long-term 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 Capital Markets, which also arranged BIAL’s inaugural bond issuance in 2021, facilitated this latest 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 NCD issue received strong interest from a wide range of investors, including banks, insurance firms, Infrastructure Debt Funds (IDFs), and Public Financial Institutions (PFIs). According to BIAL, the response reflects continued confidence in its governance and long-term development plans.
BLR Airport is India’s first greenfield airport developed under the public-private partnership (PPP) model. It is the busiest airport in South India and ranks third nationally. In FY 2024, it handled more than 41 million passengers and over 502,000 metric tonnes of cargo. The airport is also the leading hub for processing perishable cargo in India, a position it has maintained for four consecutive years.
BIAL has 43 years remaining in its 60-year concession period and aims to continue expanding its infrastructure to meet growing demand. Its development is supported by Fairfax India Holdings Corporation, the airport’s majority private promoter.
