As per news report, to refinance debt and free up cash to invest in expanding its 4G network, Bharti Airtel is planning to raise an amount of $750 million (about Rs 5,300 crore) through the sale of overseas bonds. Depending on the investor response, the sum may go up to $1billion (Rs 7,000 crore).
The news source also reveals that the perpetual bonds are a quasi-equity obligation without a fixed maturity. The securities, which will be sold to investors across the world, are known as 144A bonds that allow the participation of those in the US as well. The bonds will be a five-year non-call which means the debt cannot be repaid before five years.
Networki2i, Airtel’s Mauritius subsidiary will be the official borrower and will issue the bonds, as expected. The bonds may be priced in the range of 5.75-6.10 per cent.
Eight international banks like Citi, Standard Chartered, JPMorgan and Barclays will manage the sale.
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