Bangalore International Airport Ltd (BIAL), which operates India’s third-busiest airport, plans to raise over Rs 46 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 raised around Rs 43.6 billion through 15-year bonds at a coupon rate of 8.15 per cent, payable monthly. The upcoming tranche is expected to be issued at a similar interest rate, the sources added.

The bonds carry a AAA rating from Crisil Ratings, India Ratings, and ICRA. The upcoming issue, like the first, will have a 15-year maturity but will be privately placed rather than auctioned on an electronic bond platform. SBI Capital Markets, which arranged the previous issuance, will also manage the second tranche.

The transaction saw strong interest from banks, insurers, and infrastructure-focused funds. Proceeds from the bond issue will be used to refinance existing debt and fund new capital expenditure.