Home Investment Products Debt / Bonds Bharti Airtel raises $1.25 bn through overseas bonds

Bharti Airtel raises $1.25 bn through overseas bonds

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Bharti Airtel raises $1.25 bn through overseas bonds

NEW DELHI :
Bharti Airtel Ltd has raised $1.25 billion abroad by promoting senior bonds and perpetual bonds, within the largest fundraising by any Indian funding grade issuer since January 2019, it mentioned on Thursday.

Bharti Airtel priced the senior 10.25-year bonds of $750 million at a yield of 187.5 foundation factors (bps) for an implied coupon of three.25%, whereas its wholly-owned subsidiary Community i2i Ltd priced $500 million price assured subordinated perpetual 5.25-year bonds at a coupon of three.975%.

“That is the bottom yield on 10-year and perpetual bonds for Bharti Airtel,” the telco mentioned.

The telco mentioned it obtained orders from 92 accounts for senior bonds and 97 accounts for perpetual bonds. The order e book is “very nicely distributed” by area with greater than 30% from Asia Pacific, greater than 45% from Europe, West Asia and Africa, and the remaining from the US, it mentioned.

The providing was considerably oversubscribed with robust demand from a number of marquee Asian, European and American funds, the corporate mentioned. “The height order e book of over $5 billion, on the time of ultimate value steerage, allowed the pricing to tighten considerably from preliminary value steerage (IPG) on each tranches and allowed Airtel to satisfy its pricing in addition to dimension targets,” it mentioned.

Barclays, BNP Paribas, BofA Securities, Citigroup, HSBC, JPMorgan, and Normal Chartered Financial institution have been joint lead managers and joint book-runners for the fundraising, whereas DBS Financial institution Ltd and SMBC Nikko have been co-managers.

“The robust reception of each our senior and perpetual bonds by the top quality international investor neighborhood displays its confidence in our enterprise and credit score,” mentioned Ashish Sardana, group treasurer, Bharti Airtel.

The fundraising will additional assist Airtel’s capital construction, Sardana mentioned.

In 2021, Indian firms have been aggressively elevating international debt by bonds, trying to make the most of the liquidity and low charges.

Non-public corporations reminiscent of Adani Ports and SEZ Ltd, and Continuum Inexperienced Vitality Ltd and state-run entities reminiscent of SBI, Export Import Financial institution of India, and Energy Finance Corp. have mobilized funds by the offshore debt capital market this 12 months. Others reminiscent of UltraTech Cement Ltd, ReNew Energy Pvt. Ltd, and IRB Infrastructure Builders Ltd raised debt by abroad bonds earlier this month.

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