Bharti Airtel raises about Rs 6,350 cr in bonds: Media Report

Bharti Airtel raises about Rs 6,350 cr in bonds
Bharti Airtel said that it has raised Euro 750 million or about Rs 6,350 crore in the first such bond issue by an Indian corporate and received bids worth Euro 3.8 billion, according to PTI report.

The company raised the money at a coupon rate of 4.05 per cent for the five-year paper and will use the proceeds to refinance its existing debt. The coupon rate is the yield paid by a fixed income security, the report added.

"...Its wholly-owned subsidiary Bharti Airtel International (Netherlands) BV has priced EUR 750 Million 4 per cent guaranteed senior notes due 2018. The notes will be fully and unconditionally guaranteed by Bharti Airtel," the company said in a statement.

Bharti Airtel said the notes attracted huge investor interest with an order-book aggregating over Euro 3.8 billion from high quality investor accounts.

"The notes have been priced at 300 basis points over the 5-year EURO Mid Swap with a fixed coupon of 4 percent per annum to yield 4.055 percent," it said.

In terms of geographic distribution, the notes were distributed 38 percent in the UK, 18 percent in Germany and Austria, 35 percent collectively in France, Switzerland, Scandinavia and Netherlands and other European countries and 9 percent in Asia.

"The notes were distributed 77 percent to fund managers, 9 percent to SSA/insurance, 9 percent to private banks and 5 percent to banks," it said.

"This transaction helps us continue to diversify sources of funding and the EUR financing also acts as a natural hedge to many of our African businesses where local currency is pegged to Euros," Bharti Group Treasurer Harjeet Kohli said.

Barclays, BNP, DB, JP Morgan, Standard Chartered and UBS acted as joint bookrunners and joint lead managers on the offering.

Story first published: Thursday, December 5, 2013, 9:10 [IST]
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