Bharti Airtel to raise 500 million pounds via bond issue to refinance debt

NEW DELHI: Bharti Airtel, India’s leading telecom operator, plans to raise up to £500 million (about .`5,030 crore) through its first bond issue in the British currency and use the proceeds to refinance its current debt. “This bond, when issued, will be listed on the London Stock Exchange,” the company said in a notice to the stock exchanges on Friday. The issue will help Bharti Airtel drive its strategy of further diversification and further extension of maturities of its existing debt, the notice said.

The company’s consolidated net debt totalled $10.77 billion (about Rs 71,300 crore) at the end of September, most of which is for its Africa business. The intended issue and its timing remain subject to necessary authorisations and approvals, global credit environment and market conditions, the company said.

“This debut GBP issue will be used for refinancing our existing loan portfolio,” Harjeet Kohli, group treasurer at Bharti Airtel, said in the notice. “Besides utilising the capital and expertise of the United Kingdom in financing Indian telecom growth story, the issue will further strengthen the long-term strategic partnership between the two nations.”

The announcement of the bond issue comes in the backdrop of the ongoing UK visit of Prime Minister Narendra Modi.

Bharti Airtel has issuances across maturities in USD, EUR and CHF listed on the Singapore, Frankfurt and Swiss Stock Exchanges.