Bharti Mobile In Rs 265 Crore Structured Debt Plan
Bharti Mobile Ltd is planning to raise Rs 265 crore through a structured debt obligation to fund its expansion plans into national long distance, basic and cellular services. This proposed issue has a tenure of 10 years and comprises semi-annual interest and principal payments.
Rating agency Crisil has assigned a AA+(so) to issue based on the credit enhancement provided through cash collateral with a part gaurantee by Bharti Televentures Ltd and a partial gaurantee by International Finance Corporation (IFC).
In addition to the credit enhancement structure, the rating also factors in the qualitative aspect of the gaurantee, wherein IFC would monitor Bharti Mobile's credit profile through restrictive bonds and management inputs, which is expected to enhance the company's adherence to the structured obligation structure.
A company of the Bharati group, Bharti Mobile provides cellular mobile telephoneservices in Andhra Pradesh and Karnataka. Telia AB Sweden has 26 per cent stake, while Bharti Televentures has a 74 per cent in the company. For the year 1999-2000, the company has reported a net loss of Rs 25.43 crore on gross revenue as against Rs 110.42 crore.