Uttar Pradesh govt completes first phase of funding for Noida airport

The Uttar Pradesh government announced the complete funding of the first phase of the aviation project, for which the State Bank of India (SBI) and Noida International Airport Ltd (NIAL) signed a deal. According to the officials, the financial agreement was signed between Yamuna International Airport Pvt Ltd (YIAPL), SBI and NIAL. The nodal agency of the project was set up by the UP government. The stakeholders even signed a substitution agreement and an escrow agreement. The airport's financial clauses were also completed, officials said. As per a statement, YIAPL raised Rs 3,725 crore from SBI as debt for the project, which will be paid back in 20 years with a one-year moratorium after completing the project. It is one of the largest financings for Indian Greenfield airport. It further said that the project funding is a debt-to-equity with a ratio of 65:35. The lead shareholder of YIAPL is Zurich Airport International AG (ZAIA), providing Rs 2,005 crore as equity for the development of Noida International Airport. CEO of NIAL, Arun Vir Singh, said he would enable its team to focus on the construction for the development of the airport. Shailendra Bhatia, the nodal officer, explained the financial close, which means that the funding related to the project had been completed, and the project was ready for construction. As per the agreement, YIAPL has to pay 65% of the cost incurred on the project through SBI's funding, while the remaining would be infused with the parent company. The Noida International Airport will be India's biggest airport after completion. The Greenfield project's first phase covers 1,334 hectares, with two runways, officials said. Image Source Also read: Zurich Airport inks pact for Noida International Airport development Also read: UP govt okays ph 2 land acquisition for Noida airport