Bharti Airtel successfully prices dual-tranche bond offering of USD 1.25 bn

Bharti Airtel has successfully priced its debt fund raise of US$1.25 billion through the issuance of its first ever dual-tranche US$ bond offering spread across senior and perpetual issuance. This is the largest issuance by any Indian Investment Grade issuer since January 2019.

Airtel has priced US$750 million of senior 10.25 year bonds at a yield of US 10 Year Treasury + 187.5bps for an implied coupon of 3.250%. Simultaneously, Network i2i Limited, a wholly owned subsidiary of the Company priced US$500 million in guaranteed subordinated perpetual NC 5.25 year bonds with a coupon of 3.975%. This is a lowest every yield on 10 year and Perpetual bonds for Bharti Airtel.

The offering was significantly oversubscribed with very strong demand from several marquee Asian, European and American funds. The peak order book of over US$ 5bn at the time of final price guidance allowed the pricing to tighten significantly from Initial Price Guidance (IPG) on both tranches and allowed the Company to meet its pricing as well as size objectives. The senior 10.25 year tranche was launched at IPG of 230bps over 10 year US Treasuries and eventually tightened by 42.5bps to price at 10 year US Treasury + 187.5bps. Similarly, the Perpetual NC 5.25 tightened by 37.5bps from its initial price guidance.

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