Bharti Airtel plans to issues shares up to USD 2.11 Billion to repay debt, cut borrowing cost

Published Date | 2018 November 28

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. telecommunicationsThe 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. According to BlueWeave Consulting, the global telecommunications market has been transforming on account of the on-going innovations and developments, consistently and at a fast pace. Carriers are anticipated to strive for improving their network and offering expanded services to their customers by network densification and making use of small cells. Installing more fibre infrastructure and enhancing spectrum efficiency will also be the target for carriers. There are several factors fuelling the growth of the global telecommunication market encompassing the advanced technology, intense market competition, and high investments in new telecommunication technologies such as wireless communication and satellite. Some of the other factors behind the growth of the market worldwide include affordability of services, innovative services such as e-agriculture and e-education, and demand for high speed internet. According to the upcoming report by BlueWeave Consulting on “Global Telecom Market, By Product, By End-user, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, mobile and telecommunications landscape is getting technically advance at faster space. From operator, subscriber coverage to infrastructure & components, to new technologies and players now more than ever, a complete view of the telecom ecosystem and adjoining markets is essential to successfully navigating this intricate web.