Airports Authority of India unlikely to opt for masala bonds to raise funds 

"The current process of privatisation of six airports is expected to fetch a one-time capital expenditure return of Rs 2000 crore while annual income would be around Rs 900 crore. Then there will be more airports which are likely to be privatised. Hence, keeping those factors in mind, it will be better to chalk out a borrowing plan for two years for now," a person aware of the matter said.

The borrowing plan, which is expected to be finalised next week, is likely to advocate for raising around Rs 500 crore in first tranche via US dollar-denominated bonds, the sources said. The airport body is especially eyeing pension funds as it feels that this category will be better suited keeping mind the cycle of returns in aviation space.