Sunil Mittal’s Bharti Telecom plans its biggest Rupee bond sale

The issuance is also Bharti Telecom’s first onshore debt sale this year, after raising 80 billion rupees through three-part notes in December 2023.

Bharti Telecom, owned by billionaire Sunil Bharti Mittal, is planning to raise about Rs 8500 crore ($1.01 billion) in the local-currency bond market, according to people familiar with the matter.

The company may seek bids for the notes due in three to 10 years next week, with the longer end bonds likely offering a coupon of 9%, they said, asking not to be named as the information is not public. If successful, it will be Bharti Telecom’s largest-ever rupee issuance, according to data compiled by Bloomberg.

The borrowing is coming days after India’s second-largest wireless carrier Bharti Airtel Ltd., in which Bharti Telecom is the largest shareholder, reported a quarterly profit that trailed analysts estimates due to foreign exchange losses. The borrower may have to offer a higher coupon rate than other similarly rated firms as it is the holding company, the people said.

A spokesperson for Bharti Telecom didn’t immediately respond to a request for comment.

Standard Chartered Plc and Barclays Plc are arranging the deal, the people said. A spokesperson for Standard Chartered declined to comment, while the Barclays spokesperson didn’t immediately respond to a request for comment.

The issuance is also Bharti Telecom’s first onshore debt sale this year, after raising 80 billion rupees through three-part notes in December 2023.