Bharti Airtel and Reliance Jio to Raise $5.6 Billion by Bonds: Report

Bharti Airtel and Reliance Jio being the top telecom operators in the country are now preparing for the upcoming telecom war that seems to be heating up in the country. According to Bloomberg’s report Mukesh Ambani and Sunil Bharti Mittal might raise as much as 365 Billion Rupees ($5.6 billion) selling bonds, this strategy is supposed to build a stable financial cash pile for the telcos to help them soar through the upcoming telecom war. Going by the Report which was published, as per the March 12th filing, Mittal-controlled Bharti Airtel Ltd sold its first-ever rupee bond of 30 billion rupees last month which has granted them the approval to raise 165 Billion Rupees. Also, Reliance Jio Infocomm Ltd went through the same ordeal to stock a cash pile for the future by announcing days later that it plans to sell as much as 200 billion rupees of notes. It is interesting to note that with this move Jio has landed back on the on-shore bond market after 20 months.

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As per speculations this fund-raising step which accounts for about 78% of the total figure of outstanding bonds of India’s top four telecom firm, has been raised by Airtel and Reliance Jio to help them repay the debts which both the telcos are ridden with. This is expected to happen in the next five years. Also, the funds raised will be used to launch latest next-gen services for the users in this race of attaining the biggest subscriber base. Reliance Jio, which started rolling out its services in 2016 has taken significant debt in order to scale to large scale operations and provide services to customers at very minimal costs.