AGR dues: $3 bn fundraising reduced business flow risk, says Airtel Africa

Africa business arm of Bharti Airtel on Tuesday said recent $3 billion fund raised by the parent firm reduced uncertainty over business continuity after the Supreme Court ordered telcos to clear statutory dues as calculated by the government.

Airtel Africa in its quarterly report said the group's intermediate parent company has successfully raised approximately $3 billion of additional capital through a combination of qualified institutional equity placement and convertible bond offerings.

"In the Director's opinion the execution of these activities has reduced the level of uncertainty about the ability of the Group's intermediate parent company to comply with the judgement.

"As a result, the Directors have concluded that the previously highlighted material uncertainty around the Group's ability to continue as a going concern no longer exists," Airtel Africa said.

It added that the group has adequate committed and non-committed facilities to operate as a going concern.

Bharti Airtel, Vodafone Idea and other telecom companies owe the government as much as Rs 1.47 trillion in past statutory dues.

In the case of Bharti Airtel, the liabilities added up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is the SUC dues (not including the dues of Telenor and Tata Teleservices).

Bharti Airtel and Airtel Africa had raised concern over continuity of their business in light of AGR dues that the group has been asked to pay to the government.