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Bharati Telecom to get nearly Rs 6,000 cr debt via NCDs, says report

Bharti Telecom (BTL), a key Bharti Airtel promoter, intends to borrow up to Rs 6,000 crore through non-convertible debentures (NCDs) of debt in order to purchase the remaining 3.33 percent interest that Singapore Telecommunications (Singtel) will sell in the telecom company, as per Economic Times.

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New Delhi: Bharti Telecom (BTL), a key Bharti AirtelAir promoter, intends to borrow up to Rs 6,000 crore through non-convertible debentures (NCDs) of debt in order to purchase the remaining 3.33 percent interest that Singapore Telecommunications (Singtel) will sell in the telecom company, as per Economic Times.

According to the report, leading foreign portfolio investors (FPIs) are likely to subscribe to the planned rupee-linked NCDs in large numbers.

Singtel sold 1 last week. 76 percent of Airtel via block transactions for just over Rs 7,100 crore. The majority of that stake—roughly 1. Bharti Telecom paid Rs 6,604 crore to acquire 62 percent of the market, leaving the remaining 0. Public Airtel stockholders bought a 14% stake.

In order to partially finance the final 1.5%, Bharti Telecom is currently issuing new debt. The article states that Singtel purchased a 57 percent share. Along with others, BNP Paribas, HSBC, Japan’s MUFG, and Standard Chartered Bank are probably assisting Bharti Telecom in raising the funds through rupee-linked NCDs.

The NCDs are anticipated to have shorter maturities, ranging from one to three years. The southeast Asian carrier has ruled out any additional stock investment in Bharti Telecom, according to analysts, thus the Bharti Group will need to issue debt to pay for the stake purchase in Singtel.

Currently, Singtel owns 50.56 percent of Bharti Telecom, while the Mittal family owns 49.44 percent. Currently, Bharti Telecom owns a 35.85% interest in Bharti Airtel, the nation’s second-largest telecom service provider.

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