Bharti Airtel clears deferred liabilities of Rs 8815 cr for spectrum acquired in 2015

The telecom company on Friday announced that it has paid Rs 8,815 crore to the Department of Telecom (Government of India) towards part prepayment of deferred liabilities pertaining to spectrum acquired in auction of year 2015.

The prepayment is for instalments due in FY 2027 and FY 2028.For the past four months, Bharti Airtel has settled Rs 24,334 crore of its deferred spectrum liabilities much ahead of scheduled maturities. These liabilities carried an interest rate of 10% and have been paid off through a combination of strong free cash generated by business, equity proceeds and significantly lower cost debt of similar tenor.

Airtel said that it continues to focus on financial flexibility via its capital structure including optimising cost of financing and capitalising on all opportunities of significant interest saves like this prepayment.

Bharti Airtel is a global communications solutions provider with over 480 million customers in 16 countries across South Asia and Africa. The company reported a 2.8% decline in consolidated net profit to Rs 830 crore in Q3 FY22 from Rs 853.6 crore posted in Q3 FY21. Total revenues stood at Rs 29,867 crore, up 12.6% YoY.

Shares of Bharti Airtel were trading at 0.79% higher to Rs 711.85 on BSE.

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