Bharti Airtel plans to issues shares up to USD 2.11 Billion to repay debt, cut borrowing cost
- Published | 28 November 2018
The company has taken this discussion to strategically rise about USD 4.23 Billion of which issuing shares worth USD 2.11 Billion, so that it can meet capital expenditure, reduce debt and financing cost
India: Bharti Airtel has decided to raise USD2.1 Billion by issuing shares to repay their debt and reduce borrowing cost. The company is examining the issue right to existing shareholders or private placement institutional investors and promoters. Bharti Airtel announced that it intends to launch an initial public offering (IPO) of Airtel Africa, its UK-incorporated subsidiary, in mid-2019 on an international stock exchange. The IPO aims to raise USD1.25-1.5 billion, which would be used to reduce the debt of the African subsidiary, another source told the paper.
The company has a net consolidated debt of USD 16.16 Billion of which borrowings at Indian operations' stands at USD 11.29 Billion. This amount includes outstanding spectrum payments of nearly USD 6.49 Billion. The company's debt, however, is anticipated to come down significantly, with the international business having a residual debt of about USD 2.469 Billion, a person aware of the development told the paper.
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