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Bharti Airtel raises $1.25 billion via overseas bonds

The telecom operator has priced $750 million worth of senior 10.25-year bonds at a yield of 187.5 basis points for an implied coupon of 3.250%. (Photo: Reuters)Premium
The telecom operator has priced $750 million worth of senior 10.25-year bonds at a yield of 187.5 basis points for an implied coupon of 3.250%. (Photo: Reuters)

  • The telco has received orders from 92 accounts for senior bonds, and from 97 accounts for perpetual bonds. The order book is very well distributed by region, with over 30% from Asia Pacific, more than 45% from Europe, the Middle East and Africa and the balance from the US

NEW DELHI: Bharti Airtel Ltd on Thursday said it has raised $1.25 billion overseas through senior and perpetual bonds, making it the largest fundraising by any Indian investment grade issuer since January 2019.

The telecom operator has priced $750 million worth of senior 10.25-year bonds at a yield of 187.5 basis points for an implied coupon of 3.250%.

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Network i2i Ltd, a wholly-owned subsidiary of the company, priced $500 million in guaranteed subordinated perpetual 5.25-year bonds with a coupon of 3.975%. "This is the lowest yield on 10-year and perpetual bonds for Bharti Airtel," the telco said.

The Sunil Mittal-led company has received orders from 92 accounts for senior bonds, and from 97 accounts for perpetual bonds. The order book is "very well distributed" by region with over 30% from Asia Pacific, more than 45% from Europe, the Middle East and Africa and the balance from the US.

The offering was significantly oversubscribed with strong demand from several marquee Asian, European and American funds. “The peak order book of over $5 billion, at the time of final price guidance, allowed the pricing to tighten significantly from initial price guidance (IPG) on both tranches and allowed Airtel to meet its pricing as well as size objectives."

Barclays, BNP Paribas, BofA Securities, Citigroup, HSBC, JP Morgan and Standard Chartered Bank were joint lead managers and joint book runners for the fundraising, while DBS Bank Ltd and SMBC Nikko were co-managers on the trade.

"The strong reception of both our senior and perpetual bonds by high quality global investor community reflects its confidence in our business and credit," said Ashish Sardana, group treasurer, Bharti Airtel.

The fundraising will support Airtel's capital structure, added Sardana.

Linklaters Singapore Pte Ltd was the legal advisor to the company, while Cyril Amarchand Mangaldas & Co and Latham & Watkins LLP advised the lead managers. Deloitte Haskins & Sells LLP Chartered Accountants is the statutory auditor of Airtel.

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