The Hindu : Business : DIAL ties up bank loans

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Saturday, Dec 08, 2007
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Business

DIAL ties up bank loans

Special Correspondent

Capital expenditure for the first phase of the airport project put at Rs. 8,900 cr.

— PHOTO: V. V. KRISHNAN

MASTER PLAN: Taxiway under construction along with the third runway, one of the longest in Asia, at the Indira Gandhi International Airport in New Delhi.

NEW DELHI: GMR-led Delhi International Airport Ltd (DIAL) on Friday said it had secured a Rs. 4,940-crore loan for modernisation and expansion of Delhi’s Indira Gandhi International Airport.

DIAL, a public-private partnership initiative, is mandated to modernise and restructure the IGI airport. It said that it had signed key financing documents with its project lenders for Rs. 3,650 crore and foreign currency loan of $350 million to fund the project.

The total capital expenditure programme of the first phase till 2010 was estimated at about Rs. 8,900 crore. This is expected to be funded by debt and equity in the ratio of 1.25:1, comprising equity and quasi equity of about Rs. 3,950 crore and debt of Rs. 4,940 crore, DIAL Chief Financial Officer Shirish Navlekar said.

The rupee component of the debt, amounting to Rs. 3,650 crore, has been raised for 17 year door-to-door tenor at an interest rate of 10.50 per cent and the external commercial borrowings (ECB) component of $350 million has been raised with a 13-year period. The deal has been syndicated by ICICI Bank.

The various banks that have extended loan to DIAL include Canara Bank (Rs. 600 crore), IIFCL (Rs. 500 crore), Union Bank of India (Rs. 500 crore), Oriental Bank of Commerce (Rs. 400 crore), Central Bank of India (Rs. 400 crore), Andhra Bank (Rs. 250 crore), Vijaya Bank (Rs. 250 crore), IDFC (Rs. 250 crore), Bank of India (Rs. 250 crore) and Punjab National Bank (Rs. 250 crore).

The company said out of the $350-million foreign currency loan, $200 million has been financed by ICICI Bank, Singapore, and another $150 million by Abu Dhabi Commercial Bank, Abu Dhabi.

DIAL is now implementing the Master Plan for the development of a new airport complex. Work on the integrated passenger terminal and runway commenced in February and the new terminal would be inaugurated in 2010 before the Commonwealth Games here. The IGI Airport is one of the largest in India with over 20 million passengers annually and will become the largest airport in the region by 2010 with slated capacity of 37 million passengers annually. The Master Plan envisages an ultimate design capacity of 100 million passengers annually by 2026.

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