Mumbai Intl Airport achieves financial closure

Mumbai, Apr 24: Mumbai International Airport Pvt Ltd (MIAL), theGVK-led consortium which is modernising the Chhatrapati ShivajiInternational Airport (CSIA) at Mumbai, today achieved financialclosure.

MIAL has tied up its required long-term fund based debtrequirements of about Rs 4,200 crore with a consortium of banks andfinancial institutions led by Industrial Development Bank of IndiaLimited (IDBI), a statement issued here said.

The investment will be utilised with the objective of developingCSIA into a world-class airport handling passenger traffic of 40million per annum.

Some of the key upgrades will include building a common integratedterminal for both domestic and international passengers with best inclass systems and amenities, upgrading and developing the runway systemwith taxiways and rapid exit taxiways to improve the operatingefficiencies and increase the Air Traffic Movements (ATMs) anddeveloping infrastructure on the city-side and creating efficientaccess to the terminals.

IDBI is the lenders agent while the UTI Bank Ltd is acting asEscrow Banker and Trust and Retention Account Banker. The consortiumcomprises Andhra Bank, Bank of Baroda, Bank of India, Canara Bank,Central Bank of India, India Infrastructure Finance Company Ltd (IIFC),Indian Bank, IDBI, Oriental Bank of Commerce, Punjab National Bank,Syndicate Bank, United Bank of India, UTI Bank Ltd and Vijaya Bank.

Commenting on the financial closure, G V Krishna Reddy, Chairman,MIAL said, ''Our vision is to transform CSIA into an airport which isbenchmarked on global standards of airport operations and service.Achieving financial closure is a significant milestone in realisingthis vision. We thank the consortium of lenders for their support forfunding the modernisation of CSIA.'' The loan tenure is for a period of17 years, covering a seven-year loan drawl period. MIAL has procured aninterest rate, which is benchmarked to three years Government Securityplus a margin of 215 basis points. The repayment of the loan willcommence from the end of the seventh year and will be repaid in 120monthly payments thereafter.

Mumbai International Airport Pvt Ltd (MIAL) is a joint venturebetween the GVK-SA consortium and Airports Authority of India (AAI).

MIAL was awarded the mandate of modernising and upgrading Chhatrapati Shivaji International Airport (CSIA).

GVK is amongst India's largest infrastructure developers withexperience and expertise spanning areas including power, roads,airports and urban infrastructure. Until date, GVK has invested over Rs5,000 crore into infrastructure projects and has on hand projects inthe pipeline of over Rs 12,000 crore.

UNI