Ahead Of 5G Spectrum Auction, Airtel Likely To Raise Up To Rs 5,000 Crore Through Rupee Bonds: Report

Ahead of the 5G spectrum auction, Telecom Major Bharti Airtel is likely to raise Rs 5,000 crore through rupee-linked bonds to refinance high-cost debt and fortify its balance sheet, reports Economic Times.

The fundraising via rupee-linked bonds will be part of the company's plan to raise Rs 7,500 crore fund.

Further, Airtel will also mulling two other options - an offshore bond issue and a rupee loan from local market, people familiar with the matter were quoted in the ET report as saying.

"The rupee-linked corporate bonds with multiple maturities may come with multiple tenors in range of three to 10 years," a senior executive involved in local bond sales was quoted in the ET report as saying.

A 10-year paper may be priced at 8-8.25 per cent, the executive added.

Earlier this month, Airtel had said that it plans to raise up to Rs 7,500 crore for refinancing through issuance of secured/unsecured, listed/unlisted non-convertible debt securities inclduing debentures and bonds in one or more tranches.

The development comes as Airtel's net debt nearly stood at Rs 1.6 lakh crore at December end compared with Rs 1.66 lakh crore at end of September.