The company priced at the tap-issue (reopening of an existing issue) 275 bps above the Euro-MS rate. (Agencies)
“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 leading bankers said here on Monday 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 run secured (Reg S) notes at 4.05 percent 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 said.
A Bharti Airtel spokesperson, however, declined to comment on the development.
In December last year, Sunil Mittal-led firm had raised euro 750 million (about Rs 6,350 crore) in the first such bond issue by a corporate and received bids worth euro 3.8 billion.
In terms of geographic distribution, the notes were distributed 38 percent in Britain, 18 percent in Germany and Austria, 35 percent collectively in France, Switzerland, Scandinavia and the Netherlands and other European countries and nine percent in Asia.
Bharti Airtel's move to raise fresh funds comes three weeks before the start of spectrum auction in which the company may have to bid for frequencies in 90 MHz band that it uses in Delhi and Kolkata for mobile services.
In March 2013, the company had raised USD 1.5 billion in overseas debt in two tranches. Bharti Airtel had net debt of Rs60, 877 crore in September 2013.
Shares of the company closed at Rs 331.25 apiece, up 0.2 percent, at BSE on Monday, whose main gauge rallied 375 points.
Meanwhile, the Indian telecom major today announced that Bharti Airtel International (Netherlands) BV, a wholly owned subsidiary of Bharti Airtel Limited has approached investors for the re-opening of EUR 750 mn 4 percent senior notes due 10 December 2018.
According to I-bankers, the domestic companies are entering the European debt market as this market provides an efficient and consistent source of liquidity. The market has significant depth and comparable in size to USD market.
In the just concluded year, domestic corporates and financial institutions had raised a record USD 16 billion in international debt, up 60 percent from 2012.
The overseas fund rising had ebbed following the May 24 tapering talk by US Fed, which spiked interest rates in Western markets. Since then there were only a few issues including HDFC Bank's USD 500 million in October and ICICI Bank's USD 750 million in November last.
The current issue has a BBB- rating from Fitch.
The company priced at the tap-issue (reopening of an existing issue) 275 bps above the Euro-MS rate.