Bangalore International Airport Ltd (BIAL), operator of India’s third-busiest airport, plans to raise over Rs 46.3 billion (approximately USD 535 million) through a second tranche of bonds by early October, according to three sources familiar with the matter.

Earlier this month, BIAL secured Rs 43.62 billion via the sale of 15-year bonds carrying a monthly coupon of 8.15 per cent. The second tranche is expected to be raised at a similar rate, the sources said, requesting anonymity due to the private nature of the discussions. The company has not yet responded to Reuters’ request for comment.

The bonds have been rated AAA by Crisil Ratings, India Ratings, and ICRA. SBI Capital Markets, which arranged the first tranche, will also manage the second issue. The bonds will again have a 15-year maturity but will be privately placed rather than auctioned via an electronic bond platform.

The previous issue saw broad participation from banks, insurance firms, and infrastructure-focused funds. Proceeds from the bond sale will be used to refinance existing debt and fund new capital expenditure.

According to ICRA, BIAL plans to invest Rs 155 billion between FY26 and FY30 to expand its airport capacity. The move is expected to boost annual passenger handling from 51.5 million to between 80 and 85 million.