Bharti Airtel prepays ₹5,985 crore of high-cost spectrum liabilities, redeems $1 billion in perpetual debt securities

Bharti Airtel, the Sunil Bharti-led telecom major, on Wednesday announced that it has prepaid an additional ₹5,985 crore of high-cost spectrum liabilities and voluntarily redeemed $1 billion in perpetual debt securities.

Bharti Airtel and its subsidiary Bharti Hexacom Ltd. have prepaid additional ₹5,985 crore to the Department of Telecom (DoT), thereby fully prepaying the high-cost interest liabilities of 8.65% pertaining to the 2024 auctions.

The company's subsidiary Network i2i Ltd. has also voluntarily called and redeemed $1 billion in Perpetual Notes.

Bharti Airtel has now prepaid ₹25,981 crore of high-cost spectrum liabilities for the current 2025 fiscal year and has cumulatively prepaid spectrum liabilities of ₹66,665 crore as on date, the company said in a regulatory filing.

“The average interest rate on the cumulative liabilities prepaid was approximately 9.74%. Airtel had earlier fully prepaid liabilities that had interest rates of 10%, 9.75% and 9.3%. These prepayments have been made about 7 years ahead of their average residual maturities,” the company said.

The prepayments have resulted in Bharti Airtel clearing ₹116,405 crore of scheduled instalments that would have otherwise been payable on their respective dates over the original tenure of the liabilities.

Consequent to these payments, Airtel has also lowered its cost of debt on spectrum liabilities to an average of approximately 7.22% on the residual ₹52,000 crore of spectrum liabilities (excluding AGR liabilities). The residual spectrum liabilities carry a long repayment profile payable in annual instalments until FY 2042, it added.

$1 billion Perpetual Debt Securities Reedemed

Additionally, Bharti Airtel said its subsidiary Network i2i Limited has voluntarily exercised a call option and redeemed $1 billion in USD Perpetual Notes issued in FY 2020.

Perpetual notes otherwise had no contracted maturity and carried an interest rate of 5.65%. Post the redemption of $1 billion in perpetual notes, Bharti Airtel will have approximately $479 million of perpetual notes outstanding, which were issued during FY 2021. These notes can be called in FY 2026, it said.

At 2:40 PM, Bharti Airtel shares were trading 0.33% higher at ₹1,739.40 apiece on the BSE.

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