Airtel appoints investment bankers to raise Rs 7500 crore via overseas bonds

Mumbai & Kolkata: Bharti Airtel is believed to have appointed greater than half-a-dozen investment banks, together with Bank of America, Barclays, Citigroup, JP Morgan, HSBC, and Standard Chartered Bank, who will help the telco raise a shade over $1 billion (Rs 7,500 crore) via overseas bonds.

“The bonds sale is expected to be launched either this weekend or early next week,” mentioned one of many bankers concerned within the train.

The Sunil Mittal-led telecom service will meet international fastened earnings traders on or after February 23 in the direction of its acknowledged plans to raise up to Rs 7,500 crore via bonds to construct a war-chest at the same time as India’s second-largest telco wants money to purchase spectrum within the upcoming 4G public sale, spend money on networks and in addition pay statutory dues, amongst different wants.

“The company will meet global fixed income investors on or after February 23, following which and subject to market conditions, it will take a final decision w.r.t. issuance of foreign currency bonds/notes, and a deal may or may not follow,” Airtel mentioned in an trade submitting Monday.

But Airtel declined to reply to ET’s queries on the appointed bankers. Individual bankers couldn’t be contacted instantly.

The overseas bonds are probably to be raised by Airtel’s Mauritius arm, Network i2i, and assured by the telco.

Market circles, although, mentioned “there may be two sets of instruments, including perpetual papers and general senior overseas notes”.

Perpetual bonds are probably to be rated within the high-yield class, that’s one notch decrease than the overall score, pegged on the lowest rank within the investment grade. BNP Paribas, DBS Bank and SMBC Nikko are amongst others serving to the borrower, which is able to resume roadshows quickly internationally.

Investor calls will probably happen with areas together with Asia, Europe and the US ranging from Tuesday. ET first wrote on the proposed fundraising in its January 18 version.

Airtel’s newest fundraise plans come after it returned to the black by posting an Rs 854 crore web revenue within the December quarter after six straight quarters of losses, on the again of a one-time achieve linked to the Bharti Infratel and Indus Towers merger and powerful cellular broadband person provides that led to file income.

India’s second-largest telco has already raised some $8 billion within the final couple of years. The newest fund raise plans come after the telco lately demonstrated dwell 5G providers on its 4G community utilizing the 1800 Mhz band and mentioned it could actually commercially launch 5G with current 4G airwaves in a couple of months.

Airtel additionally owes the federal government practically Rs 26,000 crore as adjusted gross income (AGR) dues.