Bangalore International Airport (BIAL) has raised a total of Rs102.06bn ($1.44bn) to execute various expansion projects at Kempegowda International Airport Bengaluru (KIAB).

This marks the financial closure of the Rs133.52bn ($1.89bn) expansion plan.

BIAL raised the funds from a consortium of banks, including the State Bank of India and Axis Bank.

Axis Bank has offered Rs51.06bn ($721.25m), while the SBI granted Rs51bn ($720.4m).

The project, which includes the construction of a new terminal and a second runway, will be funded in a debt-equity ratio of 80:20.

BIAL will repay the loan over the next ten years, with a one-year moratorium after completion of the project.

State Bank of India commercial clients’ group deputy managing director PN Prasad said: “SBI, being the existing lender to BIAL, has already funded certain portion of the phase two project, including earthworks for the runway to the extent of around Rs5bn ($70.63m) and the balance debt amount is being funded currently by SBI as the Lead Bank along with Axis Bank.”

The funds will be used to complete the second phase expansion of KIAB Airport, which was announced in October last year.

The expansion project, which is scheduled to be completed by mid-2021, also involves the construction of access roads and a multi-modal transport hub.

BIAL managing director and CEO Hari Marar said: “The timely financial closure will now enable us to focus on expansion and ensure that the projects are delivered within timelines.”

BLR Airport handled 33.3 million passengers in the year to March 2019.

Last month, Kempegowda Airport collaborated with Vision-Box and passenger carrier Vistara to introduce a fully biometric-based self-boarding solution for a seamless flow from registration to boarding.

BIAL is a joint venture in which Fairfax owns 54%, Siemens Projects Ventures holds 20%, and Karnataka Government and the Airports Authority of India (AAI) owns 13% each.