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Bharti Airtel announces fundraising of $1.25b via overseas bonds at lowest pricing

On Thursday, Bharti Airtel confirmed that it has successfully priced its debt fund raise of 1.25 billion dollars.

This is through the issuance of its first ever dual-tranche US dollar bond offering spread across senior and perpetual issuance.

Moreover, it is the largest issuance any Indian Investment Grade issuer has made since January 2019.

Airtel priced 750 million dollars of senior 10.25-year bonds at a yield of US 10-year treasury. It also includes 187.5 basis points for an implied coupon of 3.25 per cent.

The company noted over subscription of it’s order book about 3 times on final pricing. Further, it compromises peak order book of USD 5 billion at time for final price guidance.

Network i2i Ltd amounts to 500 million dollars as the company’s wholly owned subsidiary.

This is in guaranteed subordinated perpetual NC 5.25-year bonds with a coupon of 3.975 per cent.

Investment banks, including Bank of America, Citigroup, JP Morgan, HSBC, Standard Chartered Bank, Barclays helped the telecom raise $1 billion.

The fundraising aims to build a war chest as Indian telecom needs cash to buy spectrum in upcoming 4G auction. It also intends to invest in networks and pay statutory dues, among other needs.

BNP Paribas, DBS Bank and SMBC Nikko are among others helping the borrower in the bond sales.

India’s second-largest telecom has already raised $8 billion in the last couple of years.

Recently, the telco demonstrated live 5G services on its 4G network using the 1800 MHz band. It has the potential to commercially launch 5G with existing 4G airwaves in a few months.


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