Bharti Airtel raises $1.25 billion through bond offering

Bharti Airtel today announced that it had successfully priced its debt fund raise of US $1.25 billion through the issuance of its first ever dual-tranche US$ bond offering spread across senior and perpetual issuance. Airtel has priced US $750 million of senior 10.25 year bonds at a yield of US 10 Year Treasury + 187.5 bps for an implied coupon of 3.25%.

Airtel’s subsidiary Network i2i Limited simultaneously has priced US $500 million in guaranteed subordinated perpetual NC 5.25 year bonds with a coupon of 3.975%. This will be lowest every yield on 10 year and perpetual bonds for Bharti Airtel.

Airtel’s offering was significantly oversubscribed with very strong demand from several marquee Asian, European, and American funds. The peak order book of over US $ 5 billion at the time of final price guidance allowed the pricing to be tightened significantly from Initial Price Guidance on both tranches allowing Airtel to meet its pricing as well as size objectives.

Ashish Sardana – Group Treasurer, Bharti Airtel said, “The strong reception of both our senior and perpetual bonds by high quality global investor community reflects its confidence in our business and credit. We remain focused on keeping our balance sheet strong and these issuances further bolster our capital structure. We are delighted by the outcome and thank our investors for their continuing support.”