Bharti Airtel to Raise Rs 7500 Crore in Debt

The investment from Google in Airtel is a straight-up equity deal. But this time around, Airtel is looking to raise another $1 billion in debt instruments. The telco might use this money for the 5G spectrum auctions that are not too far from now.

Highlights

  • Bharti Airtel’s board has approved for a Rs 7500 crore fundraise via non-convertible debt instruments such as bonds, debentures, etc.
  • 5G spectrum auctions are expected to increase the debt levels of the industry and to prepare well for bidding for the necessary frequencies, Airtel might be doing this fund aise via debt.
  • Note that for now, only an approval from the board has come and the actual money is yet to be raised.

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Bharti Airtel

Bharti Airtel’s board has approved a Rs 7500 crore fundraise via non-convertible debt instruments such as bonds, debentures, etc. The telco can raise this amount in tranches or at one go, depending on the need.

Through a listing in the stock exchanges on Tuesday, Airtel’s board approved for another fundraiser. It is worth noting that just in the previous quarter, Airtel had raised Rs 21,000 crore via a rights issue.

Then, in January 2022, Airtel confirmed a $1 billion investment from Google where $300 million is for forming multi-year partnerships and the remaining $700 million for equity of 1.28% to the search-engine giant.

After Google Deal in Equity, Airtel Looking to Raise Another $1 Billion in Debt

The investment from Google in Airtel is a straight-up equity deal. But this time around, Airtel is looking to raise another $1 billion in debt instruments. The telco might use this money for the 5G spectrum auctions that are not too far from now.

5G spectrum auctions are expected to increase the debt levels of the industry and to prepare well for bidding for the necessary frequencies, Airtel might be doing this fundraise via debt. Further, the telco might be looking to increase capex for 4G using this money.

Note that for now, only approval from the board has come and the actual money is yet to be raised. But given the market position Airtel has and the way the telco has deleveraged in the last year, investors and financial institutions would be happy and comfortable giving the telco their money in debt.

Bharti Airtel ARPU has Jumped by Rs 10

On Tuesday, Airtel announced its financial results for the December 2021 quarter. The telco reported an average revenue per user (ARPU) gain of Rs 10 during the quarter. From Rs 153 in Q2 FY22, Airtel’s ARPU jumped to Rs 163 in Q3 FY22.

Subheading

The investment from Google in Airtel is a straight-up equity deal. But this time around, Airtel is looking to raise another $1 billion in debt instruments. The telco might use this money for the 5G spectrum auctions that are not too far from now.

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Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

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