Airtel raises about Rs 2100 cr from 2nd bond sale in 2 months

To prepare a war-chest for the forthcoming spectrum auction, largest telco Bharti Airtel today hit the overseas bond market second time in as many months this fiscal and raised 250 million euros in a five-year money by reopening its 750 million euro bonds sold last month.
The company priced at the tap-issue (reopening of an existing issue) 275 bps above the Euro-MS rate.
"Bharti Airtel International (Netherlands) today priced the 250 million euro (about Rs 2,100 crore) tap issue of its December 2018, 750 million euro bond issue at 275 basis points above the EUR MS," one of the lead bankers told PTI here this evening.

According to the i-banker, who wished not to be named, the company had given an initial guidance of 280-285 bps above the MS rate, but the final pricing came down to competitive 275 bps above the EUR MS.
Bharti had raised 750 million euros in December last year from these senior unsecured (Reg S) notes at 4.05 per cent coupon, the i-banker said.
"Bharti Airtel is looking to raise total of 1 billion euro (about Rs 8,400 crore) from EUR bond. It has already raised 750 million euro in December from these notes," an industry source told PTI.

A Bharti Airtel spokesperson declined to comment on the development.

In December 2013, the Sunil Mittal-led firm had raised euro 750 million (about Rs 6,350 crore) in the first such bond issue by an corporate and received bids worth euro 3.8 billion.
In terms of geographic distribution, the notes were distributed 38 per cent in Britain, 18 per cent in Germany and Austria, 35 per cent collectively in France, Switzerland, Scandinavia and the Netherlands and other European countries and 9 per cent in Asia.
Bharti Airtel's move to raise fresh funds comes about three weeks before start of spectrum auction in which the company may have to bid for frequencies in 900 Mhz band that it uses in Delhi and Kolkata for mobile services and where its licences are expiring in November this year.

In March 2013, the company had raised USD 1.5 billion in overseas debt in two tranches.Bharti Airtel had net debt of Rs 60,877 crore in September 2013.
Shares of the company closed at Rs 331.25 apiece, up 0.2 per cent, at BSE today, whose main gauge rallied 375 points.