Airtel to raise Rs16,500 crore for refinancing debt, spectrum payment

Mindy Sparks
March 13, 2018

Telecom major Bharti Airtel today received approval from the board to raise up to Rs 16,500 crore for refinancing debt and paying for spectrum liabilities.

Companies in the debt-laden telecom sector witnessed a double whammy after the entry of Reliance Jio Infocomm Ltd brought tariffs to rock-bottom levels and hit revenue streams of other operators.

Leading telecom service provider Bharati Airtel is planning to raise up to ₹10,000 crore through private placement of non-convertible debentures (NCDs). Such tranches/ series and at such rates may be approved from time to time on cumulative basis along with all NCDs issued by the company.

The company will now approach shareholders for final approval of the proposed funds.

"Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board in its meeting held on March 12, 2018, has approved the transfer of 19 per cent equity shares of Bharti Telemedia Limited ('Telemedia'), a subsidiary Company to Nettle Infrastructure Investments Limited, a wholly owned subsidiary company", the release to the BSE stated.

During the third quarter ended December 31, 2017, Bharti Airtel had a consolidated net debt of Rs 91,714 crore compared with Rs 91,480 crore in the preceding quarter. Airtel past year also said it may sell a controlling stake in tower arm Bharti Infratel Ltd. Bharti Airtel and its wholly owned arms own 53.51% in the tower firm at present.

The company, which is already mulling an initial public offering for the African unit, has also taken several steps as part of its debt-reduction spree.

The promoters of Idea Cellular Ltd - Birla TMT, Elaine Investments, Oriana Investments - have already invested Rs 3,250 crore to strengthen its balance sheet amid intense competition and before a planned merger with Vodafone India Ltd.

Other reports by Iphone Fresh

Discuss This Article