Bharti Telecom readies second $1 billion debt issue in two months

India's Bharti Telecom, the holding company of Bharti Airtel, is looking to raise $1 billion through a bond sale, its second in two months, two sources aware of the matter said on Friday.

The company is set to issue ₹9,000 crore ($1.01 billion) worth of bonds maturing in two years and in three years and is likely to pay a coupon of 7.25 per cent and 7.35 per cent, respectively, on these notes, close to secondary market levels for October's issue, according to the sources.

The funds are being raised largely for refinancing upcoming debt maturities, the sources said, requesting anonymity as they are not authorised to speak to the media.

The company did not immediately respond to a Reuters email seeking comment.

The firm has bonds worth ₹7,250 crore ($817.89 million) maturing in December, after ₹2,500 crore of bonds matured on Friday. It also has securities worth ₹26,650 crore that will mature between 2026 and 2034.

In October, Bharti Telecom raised ₹10,500 crore through the sale of bonds maturing in two years and in three years and two months at an annual coupon of 7.35 per cent and 7.45 per cent, respectively.

The sources said, mutual funds are likely to be big buyers of these bonds, as in the previous issue, while some foreign banks have also shown interest.

At the indicative pricing, this would be the cheapest bond fundraising for Bharti Telecom in four years.

An upgrade of its bonds earlier this year to the highest rating of AAA by CRISIL Ratings has helped lower its borrowing cost.