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Bharti Airtel raises Rs 5,330 crore from foreign investors

The Sunil Mittal-led telco intends to use the fund proceeds for refinancing, investments in subsidiaries and general corporate purpose

Bharti Airtel raises Rs 5,330 crore from foreign investors

Bharti Airtel raises around Rs 5,330 crore through a hybrid financial instrument

Bharti Airtel on Wednesday said it has raised around Rs 5,330 crore ($ 750 million) from investors based in Asia, Europe and the US through a hybrid financial instrument.

Bharti Airtel in an exchange filing said, "Its wholly-owned subsidiary Network i2i Limited, has priced ... offering of $ 750 million 5.65 per cent subordinated perpetual securities."

The securities, priced at par at a coupon and yield of 5.65 per cent, are expected to be rated 'BB' by global rating agencies, S&P and Fitch.

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The Sunil Mittal-led telco intends to use the fund proceeds for refinancing, investments in subsidiaries and general corporate purpose.

Commenting on the development, Bharti Airtel's Treasury Head Ashish Sardana said the company continued to remain focused on strengthening its balance sheet and this subordinated perpetual issue with 100 per cent accounting equity treatment will helps it in deleveraging further.

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"In the backdrop of the current global economic environment, the strong response for its inaugural hybrid securities offering from high quality investors across Asia, Europe and the US underlines the future growth potential of its business," Sardana said.

"We are delighted by the outcome of this transaction and the continuing support and appreciation of our credit by the global investor community," he added.

Barclays Bank PLC, BNP Paribas, Citigroup Global Markets Limited, HSBC, JP Morgan Securities, Merrill Lynch (Singapore) Pte Ltd and Standard Chartered Bank acted as joint bookrunners for the offering.

Edited by Chitranjan Kumar

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