Delhi International Airport Ltd (DIAL) has successfully raised ₹3,500 crore through 15-year rupee-denominated non-convertible debentures (NCDs) to refinance its $522.6 million 6.125% dollar notes due in October 2026. According to reports from The Economic Times, the NCDs carry an initial coupon of 8.71% per annum, payable quarterly, with the coupon linked to the RBI repo rate and an initial spread of 375 basis points. The coupon will reset after five and 10 years. The key information document names HDFC Bank, ICICI Bank, IDFC First Bank and NIIF Infrastructure Finance as anchor investors, with a combined allocation of ₹1,050 crore.
India Infrastructure Finance Company Ltd (IIFCL) emerged as the largest investor, subscribing ₹1,426 crore to the NCDs. As reported by The Economic Times, NIIF Infrastructure Finance invested ₹550 crore, while HDFC Bank, ICICI Bank and IDFC First Bank subscribed ₹481 crore, ₹433 crore and ₹409 crore respectively. SBI Capital Markets subscribed ₹200 crore, with HDFC Bank and ICICI Bank serving as arrangers. The proceeds from the NCD issuance will be used for full redemption, repurchase or refinancing of the $522.6 million notes due in October 2026 and to meet issue-related costs.
After refinancing the October 2026 maturity, DIAL will have $500 million of dollar bonds due in June 2029. According to The Economic Times, ICRA noted that the company could partly repay the 2029 bonds through internal cash accruals and land monetisation, refinancing the balance. The company has major debt maturities due in October 2026 and June 2029, exposing it to refinancing risk.
ICRA assessed that DIAL maintains a moderately leveraged capital structure with bullet repayments in the medium term, exposing the company to refinancing risk. As reported by The Economic Times, the company operates Delhi's Indira Gandhi International Airport under a 30-year concession, extendable by another 30 years, with GMR Airports holding 74% and Airports Authority of India holding 26%. DIAL is a joint venture between GMR Airports Ltd and Airports Authority of India.
