Bharti Airtel Limited, the Indian multinational telecommunications services company has raised USD 1.25 billion through the insurance of debt instruments. The debt fundraising by the company comes prior to the start of the spectrum auction which is valued at Rs 3.92 lakh crore.
Airtel said this is the first-ever dual-tranche US dollar bond issued by the company spread across senior and perpetual issuance. “This is the largest issuance by any Indian Investment Grade issuer since January 2019,” Airtel said in a statement.
Bharti Airtel also stated that the order book was oversubscribed about 3 times on final pricing with a peak order book of USD 5 billion at the time for final price guidance. The company has priced USD 750 million of senior 10.25-year bonds at a yield of US 10 Year treasury 187.5bps for an implied coupon of 3.25 percent.
Concurrently, Bharti Airtel’s subsidiary Network i2i Limited priced USD 500 million in guaranteed subordinated perpetual NC 5.25 year bonds with a coupon of 3.975 percent. This is the lowest ever yield on 10 year and Perpetual bonds for Bharti Airtel. “The offering was significantly oversubscribed with very strong demand from several marquee Asian, European and American funds,” the statement said.
