MIAL raises Rs. 1,400 cr to fund capex plan.

Mumbai International Airport Ltd. (MIAL) has raised Rs. 1,400 crore of long-term debt from Axis Bank and IDBI Bank for capital expenditure and repayment of debt.

MIAL's plan to monetise real estate around the airport have faced delay. The airport operator is expecting to garner about Rs. 1,000 crore of deposits from real estate monetisation.

Credit rating agency India Ratings & Research has assigned an A- rating, with stable outlook to MIAL's long term debt. The rating factored in an expected 47 per cent rise in MIAL's revenue due to the new rates decided last year, the timely execution of construction projects, fast-tracking of real estate monetisation and improved recovery of dues.

After receiving the final sanction for the loan of Rs. 1,400 crore (Rs. 700 crore each from Axis Bank and IDBI Bank), MIAL drew down Rs. 700 crore from Axis Bank at the end of March. The funds will be used to repay a bridge loan of Rs. 800 crore; part of it will be used for capital expenditure.

BS