With $1.5 bn, SBI is largest financier of Bharti's Zain deal

The State Bank of India (SBI) has committed $1.5 billion (around Rs 6,900 crore) to telecom giant Bharti to part finance its acquisition of Kuwait-based Zain's African assets, making it the single largest financier to the deal.

"The State Bank has committed a total of $1.5 billion to Bharti for the deal. The dollar part will be disbursed through the foreign offices of State Bank," a top SBI official told PTI on condition of anonymity.

This makes the SBI the largest contributor amongst the ten-bank consortium, which was formed to provide the $8.3 billion financing (out of which $7.5 billion is dollar loan) to Bharti for the deal. Other mandated lead arrangers include StanChart ($1.3 billion), Barclays ($0.9 billion), Citi, JP Morgan amongst others.

Out of the committed $1.5 billion, State Bank would provide $500 million as dollar loan and the rest will be rupee loan, the official said.

The bank-syndicate has priced the loan at 195 basis points above Libor (London interbank offered rate). The loan will carry a tenure of five years, the official said.

Sources said Bharti's lead-arranger and lead-advisor StanChart has committed the second highest amount at $1.3 billion followed by $0.9 billion by Barclays. Global investment house KSCC is serving as the regional financial advisor on this transaction.

The Zain board today approved the sale of its African assets to Bharti for $10.7 billion.