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GVIAL Reaches Financing Agreement for Rs. 3,215 crores to Build Bhogapuram Airport

  • December 11, 2023
  • 1 min read
GVIAL Reaches Financing Agreement for Rs. 3,215 crores to Build Bhogapuram Airport

The overall project cost would be Rs. 4,727 crores

GMR Visakhapatnam International Airport Limited (GVIAL), a step-down subsidiary of GMR Airports Infrastructure Limited, said that it has executed financing agreement for an amount of Rs. 3,215 crores, with a consortium of 5 banks/ financial institutions, led by India Infrastructure Finance Company Limited (IIFCL), to part finance the Phase I development of Bhogapuram International Airport, which would cater to 6 million passengers annually.

The aforesaid debt will have a tenure of 18 years, comprising 3 years of construction phase, 1 year of stabilisation phase and 14 years of structured repayments.

With execution of these financing agreements, GVIAL has tied up the necessary debt to fund this project. The overall project cost would be Rs. 4,727 crores.

As part of the concession provision, an amount of Rs. 134.55 crores, shall be reimbursed by the Andhra Pradesh Airports Development Corporation Limited (APADCL) and the remaining amount shall be funded by way of equity/CCDs/sub debt etc.

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