Escrow account for Noida International Airport opened

The Yamuna International Airport Private Limited (YIAPL), Noida International Airport Limited (Nial) and the State Bank of India (SBI) on Tuesday signed an agreement to open and fund an escrow account for developing the proposed Noida international airport in Jewar along the 165km Yamuna Expressway

The Yamuna International Airport Private Limited (YIAPL), Noida International Airport Limited (Nial) and the State Bank of India (SBI) on Tuesday signed an agreement to open and fund an escrow account for developing the proposed Noida international airport in Jewar along the 165km Yamuna Expressway.

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“We have signed the financing agreement, which is required to open an escrow account that will be used for the mega project. This is a milestone. YIAPL has raised ₹3,725 crore from SBI to be repaid over a period of 20 years at an interest rateas per the existing rules with a one-year moratorium after the completion of the project. This is one of the largest funding ventures for an Indian greenfield airport,” said Arun Vir Singh, chief executive officer (CEO) of Nial.

The project is being funded on a 65:35 debt-to-equity ratio, said officials. Airport concessionaire Zurich Airport International AG (ZAIA), a fully owned subsidiary of Flughafen Zurich AG, is the main shareholder of YIAPL and will inject ₹2,005 crore as equity into the project to start the work. More funding through the equity route is likely in the future.

The YIAPL has taken possession of 1,334 hectares in Jewar where the airport is proposed to be built and has started work to mobilise resources. Prime Minister Narendra Modi and UP chief minister Yogi Adityanath are likely to lay the foundation stone of the project but the date and venue are yet to be decided. Nial officials said that the ceremony could be held either this month or next.

Christoph Schnellmann, CEO of YIAPL, said, “We are delighted to have signed the financing agreements with SBI and Nial to develop the airport. This marks the financial close (a technical term referring to the financing agreement) for the project, and we now eagerly look forward to the development of the airport in close collaboration with our partners, including Nial and SBI. This partnership will boost economic growth and employment in the state of Uttar Pradesh and will bolster the Indian aviation growth story”.

The airport is scheduled to become operational by 2024 and officials are busy in preparations of foundation laying event scheduled ahead.