Bharti to use debt, equity mix to fund Zain deal: StanChart

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As Bharti completes tying up USD 8.3 billion for the Zain deal, Jaspal Bindra, the Group Executive Director and CEO of Standard Chartered Bank, said the company has a conservative financing ratio on top of their mind and will use both equity and debt for funding the Zain deal. Standard Chartered Bank is the lead advisor to the USD 7.5 billion Bharti-Zain deal.

Bindra said the Indian telecom major has got a conservative financing ratio on top of its mind. "It is expected to use a judicious mix of both equity and debt."

Commenting on the equity rights issue, he said, "It's difficult to say because there is a consortium of investors there as well, so one could have several ways of funding equity as well."

On the issue of Indian Depository Receipts, Bindra hopes to actively promote it starting April-May. "We have achieved everything that we would want for the IDR issue."

There is no lock-in period for investors in an IDR issue, he said, adding that investors can swap IDR shares with publicly listed company shares in the London markets.

According to him, the Reserve Bank of India rules require transfer of IDR proceeds to headquarters. "One can remit proceeds from IDR to India anytime."