Bharti Airtel gains after raising funds via overseas bonds

Bharti Airtel rose 1.52% to Rs 337.30 at 9:16 IST on BSE after the company said that its wholly-owned subsidiary -- Bharti Airtel International (Netherlands) B.V.-- has priced euro 750 million 4% Guaranteed Senior Notes due 2018.

The announcement was made after market hours on Wednesday, 4 December 2013.

Meanwhile, the S&P BSE Sensex was up 433.52 points or 2.09% at 21,142.23.

On BSE, 4,143 shares were traded in the counter as against average daily volume of 2.12 lakh shares in the past two weeks.

The stock hit a high of Rs 339.45 and a low of Rs 337.50 so far during the day.

Bharti Airtel said that the Notes will be fully and unconditionally guaranteed by Bharti Airtel. The Notes attracted huge investor interest with an order-book aggregating over euro 3.8 billion from high quality investor accounts, Bharti Airtel said in a statement. The Notes have been priced at 300 basis points over the 5-year EUR Mid Swap with a fixed coupon of 4% per annum to yield 4.055%. Bharti will apply the net proceeds to refinance its existing debt.

Commenting on the development, Mr. Harjeet Kohli, Group Treasurer of Bharti, said, "It is heartening to be the first Indian corporate to access the European IG credit market. The overwhelming response from investors across Europe for this inaugural issue highlights the strength of our credit. This transaction helps us continue to diversify sources of funding and the EUR financing also acts as a natural hedge to many of our African businesses where local currency is pegged to Euros".

Bharti Airtel's consolidated net profit declined 29% to Rs 512 crore on 9.9% growth in net sales to Rs 21324.40 crore in Q2 September 2013 over Q2 September 2012.

Bharti Airtel is a leading global telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 4 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. Bharti Airtel had nearly 280 million customers across its operations at the end of September 2013.

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