AIRTEL LINES UP ~165 BN NCDs
The board of Bharti Airtel has approved raising around ~165 billion through non-convertible debentures (NCDs) and foreign currency bonds, which will be used for refinancing debt and spectrum liabilities.
The board has approved “issuance of NCDs of up to ~10,000 crore (~100 billion) on a private placement basis in such tranches/series and at such rates as may be approved from time to time on a cumulative basis, along with all NCDs issued by the company,” the company said in a regulatory filing.
Up to $1 billion (about ~64.82 billion) of foreign currency bonds would be issued in one or more tranches, the company added.
Airtel, which is facing stiff competition from the Mukesh Ambani-led Reliance Jio, had a consolidated net debt of ~917.14 billion at the end of December 2017.
The company’s board had earlier approved issuance of up to ~100 billion worth of NCDs, which would be valid for a period of one year till March 31, 2108.
According to the company, it has issued multiple long- dated bonds to raise around $6.2 billion. These bonds are spread across maturities ranging from 5 to 10 years.
The company had raised money over the past year to pare debt. It has reduced its stake in tower subsidiary Bharti Infratel and plans to increase capital expenditure guidance for 2017-18 to ~250 billion from ~200 billion.
Shares of Bharti Airtel on Monday rose 4.68 per cent to ~420.75 on the Bombay Stock Exchange on Monday on news of the fund-raising.