Business
Ahead Of 5G Spectrum Auction, Airtel Likely To Raise Up To Rs 5,000 Crore Through Rupee Bonds: Report
Swarajya Staff
Feb 22, 2022, 10:07 AM | Updated 10:07 AM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
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.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.