The Airports Authority of India will soon hit the debt market for raising over Rs 5,000 crore for the modernisation and upgrade of 35 non-metro airports.
The ministry of civil aviation has already appointed a credit rating agency and financial advisor-cum-lead arranger for raising capital for the project.
"AAI is planning to raise Rs 5,000 crore to Rs 6,000 crore for funding the modernisation programme of 35 non-metro airports of the country. AAI will float either bond or any other debt instrument soon," Praful Patel, Union Civil Aviation Minister said.
He said that Delhi-based A K Capital Services has been appointed as financial advisor and lead arranger for the finalising the options and other details of proposed debt funding.
The minister said the modernisation of 35 non-metro airports would be done in a phased manner.
V D V Prasad Rao, board member (finance), AAI, said the authority has appointed Crisil as the credit rating agency while UTI Bank, A K Capital Services, ICICI Securities and Allianz Securities have appointed as arrangers for marketing and placement of bonds.
On the time frame for tapping the bond market, Rao said that no final decision has been taken yet, adding, 'the authority has kept a flexible nature on the options to raise funding through debt instrument'.
According to sources, AAI has appointed consultants to work out a detailed plan to carry out the upgradation work of terminal buildings and other works for the 35 non-metro airports.
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