Bharti Telecom Plans $1 Billion Bond Sale to Refinance Upcoming Debt
Bharti Telecom, the holding company of Bharti Airtel, is set to raise $1 billion through a new bond issuance — its second major fundraising in two months, according to two sources familiar with the matter. The company plans to issue 90 billion rupees’ worth of bonds with maturities of two and three years, offering coupon rates of 7.25% and 7.35%, respectively. These rates are aligned with secondary market levels observed during its previous bond sale in October.
Sources indicated that the proceeds from this round will primarily be used to refinance upcoming debt maturities. Bharti Telecom faces bond redemptions of 72.50 billion rupees in December, following the maturity of 25 billion rupees on Friday, and has additional securities worth 266.50 billion rupees coming due between 2026 and 2034. In October, the firm had raised 105 billion rupees through similar short-term and mid-term notes, priced at slightly higher coupon levels.
Mutual funds are expected to emerge as major buyers once again, with some foreign banks also showing interest. If priced as indicated, this would mark Bharti Telecom’s most cost-effective bond fundraising in four years — a benefit attributed to its AAA rating upgrade by CRISIL earlier this year, which has significantly reduced borrowing costs for the company.
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