Bharti Airtel to acquire balance 3.33 per cent stake in Singtel via NCD route

Bharti Telecom, a key promoter firm of India’s one of the biggest telecom company Bharti Airtel, looks to raise up to Rs 6,000 crore of debt through non-convertible debentures (NCDs) to acquire the balance portion of the 3.33 per cent stake that Singapore Telecommunications (Singtel) will sell in the telecom firm, according to a report by The Economic Times on Tuesday.

According to the report, the proposed rupee-linked NCDs are likely to be subscribed primarily by top foreign portfolio investors (FPIs).

Singtel entities last week had jointly offloaded a 1.76 per cent stake in Bharti Airtel for about Rs 7,128 crore. The bulk of that stake — around 1. 62 per cent — was acquired by Bharti Telecom for Rs 6,604 crore, while the balance 0. 14 per cent was acquired by public shareholders in Airtel.

The shares of Bharti Airtel Ltd were sold by Pastel Ltd, a unit of Singtel.

Bharti Telecom is now planning to raise fresh debt to part-finance the remaining 1. 57 per cent stake buy from Singtel.

BNP Paribas, HSBC, Japan’s MUFG, and Standard Chartered Bank among others are likely helping Bharti Telecom to raise the money via rupee-linked NCDs.

The NCDs are expected to be of shorter duration between one- and three-year maturities. Analysts said the Bharti Group has to raise debt to fund the Singtel stake buy as the Southeast Asian carrier recently ruled out any fresh equity infusion in Bharti Telecom.

Currently, Singtel holds a 50.56 per cent stake in Bharti Telecom and the Mittal family holds 49.44 per cent. Bharti Telecom at present holds a 35.85 per cent stake in Bharti Airtel.

Shares of Bharti Airtel closed Rs 784.60 apiece, up 2.04 per cent on the BSE on Tuesday. ABP Live