Home / Companies / Bharti Airtel arm issues dollar/euro bonds

Mumbai: Bharti Airtel Ltd on Monday concluded one of the largest overseas bond issue out of India. The company via its subsidiary raised $1 billion in dollar bonds and another €750 million in euro-denominated bonds, said two bankers involved in the transaction,

The dollar bond was raised at 10-year treasuries plus 270 basis points, while the Euro bond was raised at Euro mid swaps plus 225 basis points, said the first banker.

Bharti confirmed the sale in a statement to BSE.

One basis point is a hundredth of a percentage point.

Both bankers declined to be named. Standard & Poor’s has assigned the euro bond issue a BBB minus rating, a notch above junk. Fitch has assigned a rating of BBB-(EXP) to the US dollar issue.

On 2 April, The Economic Times newspaper had reported that Bharti would be looking to raise $2 billion by selling bonds in the current financial year. “The proceeds will be used for repayment and refinancing of existing foreign-currency debt with the rest for general corporate purposes," Bloomberg said, citing an unidentified person familiar with the development.

Bank of America Merrill Lynch, Barclays Plc, BNP Paribas SA, Hongkong and Shanghai Banking Corporation Ltd, JPMorgan Chase and Co, and Standard Chartered Plc are the bankers to the issue.

According to the first banker involved in the transaction, the dollar bond and the Euro bond issue had received cumulative bids of over $15 billion. “This is one of the largest books ever to be built for a bond issue out of India," said the banker requesting anonymity.

Prior to this issue, in 2014, 13 entities including banks have raised a total $7.38 billion through the issue of overseas bonds in different currencies.

In 2013, Indian corporations raised more than $14 billion from overseas bond markets.

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