Airtel Issues $1bn in Bonds to Pare Debts
October 04, 2019
Telecom giant Bharti Airtel plans to repay the debt by issuing bonds through its subsidiary network, i2i. In their regulatory filing, Airtel said that the bonds are “expected to be rated BB bu both S&P and Fitch.” They are looking to organize a series of investor meeting calls all across Asia, Europe, and the US, starting Wednesday.
With the fundraising expected to be in the range of $750 million to $1 billion, the proceedings must be targeted at their gargantuan debt that stood at ₹1.16 lakh crores as of June 2019. S&P Global Ratings said that Airtel’s leverage could improve in six to nine months through reduced capital spending and stabilized operations in India.
They added that i2i’s proposed perpetual securities (PERPS) were assessed to have intermediate equity content and a Bharti Airtel guarantee.