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Airtel to raise Rs 16,500 crore for refinancing debt, spectrum payment
Bharti Airtel will issue non-convertible debentures (NCDs) of up to Rs 10,000 crore to be raised in tranches.
Telecom major Bharti Airtel on Monday received approval from its board to raise up to Rs 16,500 crore for refinancing debt, and paying for spectrum liabilities.
The board of the company approved “issuance of non-convertible debentures (NCDs) of up to Rs 10,000 crore on a private placement basis” and “issuance of foreign currency bonds up to a limit of $1 billion or equivalent in one or more tranches”, Airtel said in a regulatory filing.
The NCDs of up to Rs 10,000 crore can be raised in tranches at rates that may be approved from time to time.
“Any funds, if raised from the issuance of aforesaid debt securities shall be used for routine treasury activities including refinancing of existing debt and spectrum liabilities,” the filing said.
Airtel will now approach shareholders for final approval on the proposal to raise debt.
As on December 31, 2017, the company’s consolidated net debt stood at Rs 91,714 crore, higher than Rs 91,480 crore in the previous quarter.
Shares of Bharti Airtel soared to Rs 420.75, gaining 4.68% on the BSE on Monday.
