Bharti Airtel has successfully
raised $1 billion through a bond sale in the overseas market that was over subscribed more than 9 times, making it the largest ever bond issue by an Indian telecom player.
The 10-year unsecured notes had a coupon of 5.125 per cent per annum and were launched by Bharti Airtel International (Netherlands), a wholly-owned subsidiary of Bharti Airtel.
"... wholly-owned subsidiary Bharti Airtel International (Netherlands) BV has priced $1 billion 5.125 per cent guaranteed senior notes due 2023," the company said in a statement.
The notes were nearly
9.5 times over-subscribed with an orderbook aggregating $9.5 billion from high quality investor accounts, the statement added.
The company will use the net proceeds to primarily reduce its existing debt. As of the December quarter, Bharti Airtel had a total debt of $13.6 billion and cash and equivalents of $1.9 billion as its African venture keeps bleeding.
According to the company, this is the "largest ever issuance from an Indian telecom company... and one of the largest orderbooks for a USD issuance out of Asia".
Bharti Airtel had launched roadshows in Asia, Europe and the US and picked seven foreign banks for this unsecured senior bonds (or RegS bonds), which can be issued to non-US residents and qualified institutional buyers with lesser protection clauses.
The company said, geographically, the notes were distributed 37 per cent in Asia, 30 per cent in Europe and 33 per cent in the US.
"We are extremely pleased with the strong interest shown by top global investors in Bharti's inaugural bond issue," Bharti Group Treasurer Harjeet Kohli said.
With inputs from PTI 
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